Ukraine Urgently Seeks $15 Billion to Tackle 2025 Budget Deficit

Prime Minister Denys Shmyhal stated that Ukraine needs an extra $15 billion to cover its estimated $35 billion budget deficit for 2025. The government plans to increase taxes and borrow more domestically. Parliament will debate these proposals in September to counteract the financial impact of ongoing conflict with Russia.

Prime Minister Denys Shmyhal announced on Tuesday that Ukraine requires an additional $15 billion to address its budget shortfall in 2025.

According to Shmyhal, Ukraine estimates a total budget deficit of $35 billion for the coming year, with plans to cover $20 billion in place. The budget deficit stood at approximately $38 billion in 2024, based on Ukrainian government estimates. The government intends to implement tax hikes and increase borrowing in the domestic debt market to gather the necessary funds for its ongoing conflict with Russia. Parliament is set to discuss these financial strategies in September.

In addition to these measures, the prime minister committed to efforts to shrink the shadow economy and increase tax revenues. He noted that Ukraine has received around $100 billion in financial aid from its international partners since the onset of Russia's large-scale invasion in 2022.