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PM says Ukraine needs extra $15 billion to cover 2025 budget gap

Published 08/27/2024, 05:06 AM
Updated 08/27/2024, 05:10 AM
© Reuters. FILE PHOTO: Ukraine's Prime Minister Denys Shmyhal attends a meeting with U.S. Secretary of State Antony Blinken at the Prime Minister's office in Kyiv, Ukraine May 14, 2024. BRENDAN SMIALOWSKI/Pool via REUTERS/File Photo

KYIV (Reuters) - Prime Minister Denys Shmyhal said on Tuesday that Ukraine needed an extra $15 billion to cover its budget deficit in 2025.

He said that Ukraine estimated the total budget gap for next year to be $35 billion, with plans in place to cover $20 billion. The deficit was about $38 billion in 2024, according to Ukrainian government estimates.

Shmyhal said the government planned tax increases and more borrowing on the domestic debt market to raise additional funds for its war against Russia. Parliament is due to debate these proposals in September.

© Reuters. FILE PHOTO: Ukraine's Prime Minister Denys Shmyhal attends a meeting with U.S. Secretary of State Antony Blinken at the Prime Minister's office in Kyiv, Ukraine May 14, 2024. BRENDAN SMIALOWSKI/Pool via REUTERS/File Photo

As part of efforts to raise additional funds, the prime minister also pledged to work to reduce the shadow economy and boost tax revenues.

Ukraine has received about $100 billion of financial support from its partners since the start of Russia's full-scale invasion in 2022, he added.

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