Ukraine estimates monthly deficit in 2023 budget at over $3B - Shmyhal

That's according to Ukrainian Prime Minister Denys Shmyhal, Ukrinform reports, citing the government's website.

"In 2023, our revenues will amount to UAH 1.28 trillion, while expenditures are projected at UAH 2.57 trillion. Accordingly, we estimate the monthly budget deficit for the next year at more than $3 billion," Shmyhal said.

He added that international allies already help Ukraine finance more than a third of its budget.

"For our part, we are making every effort to ensure that the financial support of partners could continue in 2023. And we definitely cannot afford additional non-targeted expenses," Shmyhal said.

He also noted that the situation with the budget, macroeconomic forecast, economic recovery directly depends on the situation at the front.

"We considered many different scenarios. The draft budget that we are submitting to the Verkhovna Rada is a conservative medium pessimistic calculation. This year, we live in a situation where the budget is revised every month depending on the priority funding needs. Next year, at least the beginning of it, [we will live] according to a similar scenario," Shmyhal said.

According to him, a budgetary fund for eliminating the consequences of armed aggression in the amount of at least UAH 19 billion will also be created as part of the 2023 budget.

"There, we plan to accumulate the seized funds of Russia and Russians, as well as international aid for quick recovery. UAH 24 billion as an additional subsidy for the compensation of war-related costs for local budgets is also envisaged," Shmyhal said.

Considering such priorities and limited resources, Shmyhal calls on MPs to take a responsible approach to the issue of adopting the budget.

"We understand that there will be attempts to increase spending. But, as I have already emphasized, war is expensive, and Ukraine cannot afford many positive but populist initiatives," Shmyhal said.