Ukrainian state budget expenditures reach almost 1 trln hryvnias since beginning of crisis - PM

MOSCOW. Aug 23 (Interfax) - Ukrainian state budget expenditures have amounted to almost 1 trillion hryvnias since February 24, almost a half of the sum - over 420 billion hryvnias - were spent on defense, Ukrainian Prime Minister Denys Shmyhal said.

"State budget expenditures reached almost 1 trillion, of which more than 420 billion hryvnias has been spent on defense and security of our country. That is, more than 40% of all we spent from the state budget were the needs of the army. As much as 288 billion hryvnias for salaries of the military. And 135 billion hryvnias for the purchase and repair of military hardware, and for the purchase of ammunition and defense products," Shmyhal said at a government meeting on Tuesday, according to Ukrainian media reports.

"Ukrainian businesses and Ukrainian citizens pay taxes despite the difficulties. The other state expenditures are funded by aid from our international allies and borrowing via military bonds," he added.

Shmyhal also said that as of now, more than $14 billion in external financing has already been attracted from Ukrainian allies, and there are plans to raise another $12 billion to $16 billion by the year-end.

"At the same time, we are discussing the possibility of drawing up an extensive new program with the International Monetary Fund. More than $5 billion will also be saved for the budget and Ukrainian citizens thanks to the successful talks that the government held with foreign creditors. Ukraine has postponed payment of foreign debts at least until 2024," he said.

The prime minister also said that by the end of 2024 Ukraine is planning to be fully ready to join the European Union.

"We are continuing to actively implement European legislation and have already fulfilled about 70% of the Association Agreement with the EU. By the end of the year, we will introduce 'customs-free rules'. Then the same industrial and digital regulations. The European integration process has not stopped for a single day. And by the end of 2024, we are planning to be fully ready to join the European Union. This is our path in terms of values and civilization," Shmyhal said.

The prime minister also noted that as part of Ukraine's recovery plan, the government is working with international partners so that they could participate in the recovery and development of certain regions and bring their unique experience during this recovery.

"We have shaped a clear and comprehensible vision of how Ukraine can become a successful and prosperous member of the European Union. And we will definitely put this plan into full effect," he said.

Shmyhal also said that more than 80% of enterprises have already resumed their operation. "Credit, tax and regulatory incentives, along with other targeted assistance, have made it possible to maintain the economic front. As a result, now more than 80% of enterprises are back to work," the prime minister said.

The government has assisted more than 600 companies to move to regions where they have resumed production, he said.

"We have managed to sow crops on more than 80% of last year's farmland and to start harvesting. The power supply and banking systems are operating steadily," he said.