Ukrainian finance minister calls for cutting expenses unrelated to crisis

MOSCOW. Nov 8 (Interfax) - Reconstruction and investment projects of local budgets should be postponed in order to meet military campaign needs to the maximum, Ukrainian media quoted Ukrainian Finance Minister Sergei Marchenko as saying at a webinar in Kiev on Tuesday.

He admitted that the lack of understanding of the situation, which Ukraine had found itself in, was a problem and said it was difficult to reach compromises under such circumstances.

Marchenko urged everyone to remember the beginning of the crisis in March-April 2022 when "there was no politics, no politicization of such matters." "I do not know what has changed. In my opinion, the situation has become worse from the point of view of our prospects, it is definitely not better," he said.

In his words, the government proposes that the road fund of 95 billion hryvni be abolished in the state budget 2024 and rids of any expenses of the central authorities, although it understands this will present a problem of economic survival.

The military campaign requires the allotment of 5 billion hryvni from the budget every day, Marchenko said. He urged everyone "to return to the reality."

By the second reading, the draft state budget envisages revenue of 1,768.5 billion hryvni, including 1,596.6 billion hryvni in the general fund, and expenses of 3,355.0 billion hryvni, including 3,120.6 billion hryvni in the general fund.

The maximum deficit is 1,571.5 billion hryvni. Marchenko said, at the same time, that out of $41 billion in external financing (the average annual rate is expected to be 40.7 hryvni to the dollar), there is currently no confirmation of the receipt of $29 billion.