Koretskyi Hints at Austerity Measures to Relieve $27B Budget Shortfall
With a $27 billion defense budget deficit, Ukraine’s PM has warned of austerity measures and the redirection of Hr.70 billion (around $1.6 billion) to help fill the gap, while calling on lawmakers to adopt reform-related decisions needed to unlock foreign funding. The government is also eyeing the premature release of part of the EU’s €90 billion aid package to help plug the shortfall.
Ukrainian Prime Minister Serhii Koretskyi cautioned on Tuesday that the country will have to implement austerity measures to address a $27 billion budget deficit. In his address to Ukraine's parliament, the Verkhovna Rada, Koretskyi explained that the government is exploring budget cuts to free up funds for defense purposes. He assured that essential social payments such as pensions and salaries would remain unaffected.
According to state media Ukrinform, the government aims to introduce a strict savings regime for budget funds not allocated to defense needs. Koretskyi revealed that the government has identified Hr.70 billion ($1.6 billion) in potential savings, which will be redirected to the military. He attributed the deficit to increased costs of advanced weaponry and additional defense ministry spending during the first half of 2026, which exceeded funds allocated for the second half of the year.
To ensure efficient use of resources, the government plans to conduct a thorough audit of defense ministry spending.
Written by urgent.news from Kyiv Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
