Ukraine Says It Needs $5 Billion in Monthly External Aid To Avoid Budget Cut

The government's revenue is less than half of what it's spending

The head of the Ukrainian parliament’s financial committee said Tuesday that Ukraine needs $5 billion in external financial assistance or it will be facing sharp budget cuts.

“We have to borrow $5 billion monthly. If we do not get it, we will have to cut spending,” Danylo Hetmantsev said, according to Reuters.

Hetmantsev said the Ukrainian government’s revenues cover less than half of its expenses due to the war. He said the government spent about 250 billion hryvnias ($8.46 billion) in May to finance the military and help people displaced by the fighting but only collected 101 billion hryvnias ($3.42 billion) in taxes.

The US and the EU have provided Ukraine with financial assistance through direct aid and loans, but it is far below the $5 billion each month that Hetmantsev said Kyiv needs. According to Ukraine’s Finance Ministry, the country received $5.12 billion in financial assistance from foreign countries between January and May.

So far, the US has authorized $54 billion in spending for Ukraine that is meant to last through the 2022 fiscal year, which ends on September 30 for the federal government. The majority will go towards military spending, but the $40 billion bill recently signed into law by President Biden includes $8.8 billion in economic support for Ukraine and other countries impacted by the war.

Author: Dave DeCamp

Dave DeCamp is the news editor of Antiwar.com, follow him on Twitter @decampdave.