Ukraine approves new budget: $38 billion deficit | News in brief

Ukraine has been defending itself against the Russian invasion for 1,000 days. The country’s economy is in trouble.

The Ukrainian parliament approved the 2025 budget today.

The country spends the lion’s share of its budget on defense and security, a total of about 53.7 billion dollars. The amount in question corresponds to approximately 26 percent of the country’s gross national product and is the highest defense budget since the beginning of the war.

Taxation on consumers and companies is being raised in the country for the first time since the start of the war, in order to fix the country’s budget.

The budget deficit for next year is about 38 billion dollars. The deficit is going to be covered by taking debt and financial aid from the World Bank and Western allies. The Ukrainian government also plans to borrow money from domestic lenders.

President to Volodymyr Zelensky according to Ukraine plans to produce 30,000 long-range military aircraft and 3,000 cruise missiles and explosive aircraft over the next year.

Source: Reuters

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