The Cabinet of Ministers is tightening its belt due to the budget deficit
The Ukrainian government is implementing strict austerity measures on budget expenditures in order to allocate additional resources to the needs of the Ukrainian army.
The Cabinet of Ministers noted that, given the significant budget deficit, it plans to secure additional funding for defense by cutting and optimizing government spending.
The 2027 budget will be formulated with maximum cost savings
“The government is also implementing strict austerity measures on budget funds not earmarked for defense needs. As a result, we have already identified 70 billion in savings, all of which will be directed toward defense needs,” Koretskyi stated.
According to him, despite the strict austerity measures, the state will fulfill all its social obligations to citizens.
“At the same time, we must fulfill all necessary social obligations. Thus, there will be no problems regarding pensions and salaries,” the prime minister added.
The prime minister noted that the principle of saving every budget hryvnia will also be applied during the preparation of next year’s state budget.
“When preparing the budget for the 27th year, we must also proceed from the principle of maximizing savings on every budget hryvnia. I ask the deputies to actively participate in the process of forming the budget for the 27th year,” Koretskyi noted.
The government will conduct an audit of the Ministry of Defense
The prime minister identified the review of the defense ministry’s expenditures as the government’s second task.
“My second task, and that of the entire government, will be a detailed audit of the Ministry of Defense’s needs,” Koretskyi stated.
According to him, over the course of a month, the government will analyze all issues to ensure the most efficient use of budget resources.
“Of course, we will analyze and scrutinize every hryvnia, but the war is changing significantly, and the cost of the war is rising substantially—this is the reality, and we must respond to these challenges,” Koretsky concluded.
This was reported with reference to a speech by Ukrainian Prime Minister Serhiy Koretsky in the Verkhovna Rada.
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