Planned security, defense spending indicates war will continue beyond 2025 - economist

He shared his view on Espreso TV.

“We have a separate social package that requires around $35-37 billion. Additionally, the budget declaration includes 2.2 trillion hryvnias allocated for security and defense. This figure represents 1.7 trillion from this year's budget plus half a trillion. In fact, this aligns with the 2.2 trillion target for 2025. These figures suggest that the war is unlikely to end by 2025, as substantial financial expenditures on security and defense are planned. This indicates that a significant portion of these funds will be allocated to the military. We must recognize that the war will likely continue,” he said.

The Minister of Finance discussed macroeconomic financing aimed at covering social needs. According to Pendzyn, this year Ukrainians are expected to receive $37.5 billion to fund the social package.

“In 2023, we received $42 billion. For next year, we are still short of $15 billion, and it's unclear where that will come from. This is why social standards are frozen in the budget declaration, as many have probably noticed. Macroeconomic financing is about social spending. When we talk about half a trillion hryvnias, that money is allocated for security and defense. Therefore, if Ukraine receives macroeconomic financing, none of it can be used for the war. The half a trillion hryvnias mentioned, which relates to taxes, is specifically for security and defense. This money cannot be borrowed. If we borrow it, we won’t be able to allocate any of it for the war,” he summarized.

• On Wednesday, July 24, EU ambassadors approved the allocation of another €4.2 billion to Ukraine under the Ukraine Facility programme.