Photo:Getty images
In December 2024, the state budget deficit of Ukraine increased significantly due to the catch-up of expenditures and reached UAH 1.771 trillion at the end of the year. This figure exceeded the deficit of 2023 (about UAH 1.771 trillion), but was lower than the projected UAH 1.846 trillion set out in the State Budget Law. The NBU published this data in its macroeconomic and monetary review.
International assistance as a key factor
The record international aid received in December played a significant role in financing the deficit. These funds helped not only to finance the main expenditures but also to create a liquidity reserve for the beginning of 2025.
Key facts:
- Expenditures in December: became the highest ever recorded, with an annual growth rate of about 25%.
- Annual expenditure growth: remained relatively restrained at 12% year-on-year.
Budget priorities
As in previous years, the main areas of expenditure remained the same:
- defence and security sectors,
- social programmes,
- capital expenditures, which were mainly directed to military needs, infrastructure repairs and compensation to citizens for damaged property.
Particular attention was paid to repair works and compensation to citizens for the loss of property due to hostilities.
Despite a significant increase in the deficit, the government’s efforts and international support allowed it to finance the key needs of the state in 2024. The continued restrained growth of expenditures demonstrates effective budget control in a difficult environment.
The Ukrainian government is entering 2025 with a liquidity buffer that allows it to focus on recovery and stability priorities.
