According to an article by Manas Joshi on wionews.com, as the conflict with Russia enters its second year, Ukraine is preparing to significantly increase its defense budget. On September 15, the Ukrainian government approved a draft budget for the year 2024, relying on ongoing financial support from Western nations to cover the anticipated budget shortfall. Since the outset of the conflict, Ukraine has received nearly $62 billion in foreign aid from Western countries, and Ukraine's Foreign Minister, Serhiy Marchenko, expressed hope for continued Western assistance.
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A majority of the budget allocation for 2024 is earmarked for the defense sector, aimed at financing Ukraine's ongoing war with Russia (Picture source: Ukrinform)

The draft budget for 2024 anticipates a deficit of 1.548 trillion hryvnias (equivalent to $42 billion), which amounts to approximately 20.4 percent of the country's gross domestic product (GDP).

A majority of the budget allocation for the upcoming year is earmarked for the defense sector, aimed at financing Ukraine's ongoing conflict with Russia. Prime Minister Denys Shmyhal emphasized, "The primary focus of this draft budget is the defense and security of our nation." He further stated that the allocated funds for defense spending exceed the current year's budget by 113 billion hryvnias, enabling the acquisition of additional weaponry, equipment, drones, ammunition, and missiles, as detailed in his message on the Telegram messaging app.

According to Ukraine's finance ministry, defense spending will represent more than 21 percent of the country's GDP. This expenditure includes an allocation of 48.1 billion hryvnias for the procurement of drones, which have seen widespread use by both sides in the ongoing conflict.

Additionally, the finance ministry outlined a budget financing forecast that aims to reduce the deficit to 20.4 percent of GDP, down from 27 percent in 2023. The budget also includes provisions for public debt repayment, totaling 606.5 billion hryvnias (equivalent to $160 million), with 421.6 billion hryvnias (equivalent to $110 million) designated for internal debt repayments and 184.9 billion hryvnias (equivalent to $49 million) for external debt repayments.

Defense News September 2023