Ukraine Delays $2.3 Billion in Payments as Treasury Cash Runs Short
Ukraine has pushed about $876 million of spending to year-end, left $1.03 billion in payments unprocessed and suspended $404 million in VAT refunds, Finance Minister Serhiy Marchenko told the Verkhovna Rada. The Treasury is funding only defense, pensions, wages and social aid until the Single Treasury Account recovers.
Ukraine has postponed approximately Hr.39 billion ($876 million) worth of spending until the end of the year, according to Finance Minister Serhiy Marchenko. Marchenko informed the Verkhovna Rada on Monday that there are also additional Hr.46 billion ($1.03 billion) in unprocessed payments sitting in the Single Treasury Account.
These unprocessed payments encompass various expenses such as road repairs, administrative service center upkeep, penal institution maintenance, school bus purchases, housing repairs, heating season preparations, and backup power purchases. These collectively amount to a staggering Hr.103 billion ($2.3 billion). The government entered October in a liquidity crisis, meaning only defense spending, pensions, salaries, and social benefits are being financed.
Other expenditures have either been prioritized or postponed until the Single Treasury Account improves. In addition, the government has halted Hr.18 billion hryvnias ($404 million) in VAT refunds to taxpayers. Together, these three categories total the Hr.103 billion ($2.3 billion) figure. The 2027 budget, proposed by the government on September 15, stands at around $162 billion; however, Marchenko warned that Ukraine will face a cash shortage before the end of 2026.
The government has already authorized the Treasury to restrict the opening of appropriations for non-priority expenditures starting in October if the Single Treasury Account falls short of resources to settle all planned payments. The government is actively seeking domestic resources and has intensified efforts by a task force to curb the shadow economy.
This group aims to propose measures to prevent business fragmentation, combat illegal tobacco production and sales, and bring the labor market out of the shadows. The International Monetary Fund maintained its forecast for Ukraine's real GDP growth at 1.0 percent in 2026, with an expected growth of 3.5 percent in 2027, as stated in its October World Economic Outlook.
Written by urgent.news from Kyiv Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
