Ukraine faces $10 billion defense shortfall, budget revisions likely — MP Zhelezniak

MP Yaroslav Zhelezniak shared the information.

He noted that he had previously estimated the budget gap at 200 billion UAH, but now admits that this was overly optimistic.

According to the MP, the government has already begun using funds that were originally allocated for the end of the year — including military salaries for November and December. These funds are being redirected to weapons procurement, creating budget gaps that will later need to be urgently closed.

Prime Minister Denys Shmyhal effectively confirmed this during his address to parliament, stating that the need for budget changes does indeed exist, although sources for covering the additional expenses have not yet been identified.

The amendments are expected to be submitted after the next review of the IMF program — tentatively at the end of June. Until then, the government is avoiding changes to the budget so as not to jeopardize the next tranche, Zhelezniak explained.

In July or August, parliament is expected to consider an updated budget proposal with a primary focus on military expenditures. Zhelezniak emphasized that his team is already preparing proposals to identify additional resources, including through cuts to inefficient or secondary spending.

“I’ve already tasked my team with preparing certain budget changes and identifying where we can find this additional money. But unfortunately, I can now say with certainty that we’re facing a repeat of the 2024 problem, when the budget was based on unrealistic figures and will now have to be quickly revised — otherwise, it will create real problems for army funding,” the MP said.

At the same time, Zhelezniak assured that there is currently no critical threat to military payments and that the government will do everything possible to finance defense. However, he warned of a serious risk: if real sources to cover the additional spending are not found, the government may be forced to take unpopular steps, such as raising taxes.

The MP also criticized the lack of a systematic approach to budget planning, including the neglect of issues in public procurement, Energoatom, customs, and other sectors where large amounts of money are being lost.