Ukraine faces budget deficit due to delay in EU aid: details
Фото: Freepik
Ukraine could face budget financing problems in the coming months due to delays in international aid and internal political difficulties. The main risk is the blocking of a loan from the European Union, which could affect the financing of both civilian and defense spending.
This is reported by “Economic Truth” .
According to journalists, Ukraine may face a shortage of funds to cover budget expenditures in June 2026. The reason is the delay in the allocation of international aid, in particular a loan from the European Union for 90 billion euros.
This loan was expected to become a key source of financing for the budget deficit in 2026-2027. At the same time, the decision to grant it must be unanimously approved by all EU countries, but it is currently blocked by Hungary.
The day before, the head of the European Commission said that the loan remains blocked because one leader is not keeping his word.
“But I will repeat what I already said in Kyiv: we will fulfill our promise one way or another,” she said.
At the same time, according to a government source, there is currently no alternative funding mechanism.
“This should be perceived only as a political statement. In reality, there is no plan “B”, he said.
An additional risk factor is the domestic political situation. The Verkhovna Rada is in no hurry to adopt tax changes necessary to continue cooperation with the International Monetary Fund and other partners.
These include, in particular, the following initiatives:
- introduction of taxation of income from digital platforms;
- cancellation of the privilege for duty-free import of parcels;
- introduction of VAT for individual entrepreneurs;
- fixing the military levy rate at 5% after the war.
Ukraine has already received the first tranche from the IMF in the amount of $1.5 billion, but further financing depends on the fulfillment of these conditions.
In addition, Ukraine has outstanding obligations under the Ukraine Facility, which provides financing on a “cash-for-reforms” basis. The delay in implementing reforms is estimated to be around €5.9 billion.
Despite the risks, government officials express cautious confidence in the ability to avoid a financial crisis. At the same time, it is emphasized that the key factor remains the ability of parliament to adopt the necessary decisions to unblock international financing.
By the way, Ukraine could run out of defense funding within 2 months amid delays in international aid. Available resources will only last until June.
It was previously reported that Ukraine expects to receive funding from the European Union in the first weeks of April , despite the position of Hungarian Prime Minister Viktor Orban.
As is known, Hungarian Prime Minister Viktor Orban is ready to unblock an EU loan for Ukraine of 90 billion euros if the European Commission approves Budapest’s application for a defense loan of 16 billion euros under the SAFE instrument.
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