The Minister of Finance of Ukraine Sergii Marchenko said that the security and defence sectors remain the priority of the state budget for 2024. As a result, no significant increase in social and humanitarian spending is envisaged.
“We are quite cautiously adding or not indexing other expenditures, except for the security and defence sector and pensions. We are not going to index wages, which actually means freezing social and humanitarian spending,” Marchenko said during a discussion organised by the Centre for Economic Strategy.
Social priorities and constraints
Nevertheless, some areas received an increase in funding. For example, between the first and second readings of the 2024 budget, the education subvention was increased by UAH 12 billion.
“Whenever possible, we add funding to the most deprived areas. However, we act very carefully, given the limited resources,” the Minister explained.
Marchenko also stressed that the largest expenditures are focused on the needs of the Armed Forces of Ukraine and the defence sector.
Defence budget in the spotlight
The minister noted that the state clearly understands the needs of the security and defence sector, particularly against the backdrop of Russia’s full-scale invasion.
“In 2024, the funds allocated for the security and defence sector should be sufficient to ensure the required level of intensity of operations and campaigns,” he concluded.
Given the martial law and the significant needs of the defence sector, the government is limiting funding for other areas to focus resources on ensuring the country’s security. Although the social and humanitarian sector is not neglected, its development is subject to severe financial constraints.
