KYIV: Ukraine’s parliament amended the 2024 budget on Wednesday, raising defense spending by an additional 500 billion hryvnias ($12 billion) as the war against Russia rages on after nearly 31 months.
Yaroslav Zheleznyak, a lawmaker from the Holos party, said total budget spending for this year had been increased to a record 3.73 trillion hryvnias ($90 billion).
As Ukrainian troops defend more than 1,000 km (620 miles)of front lines, demand for ammunition and weapons is growing and more money is required. Ukraine has also increased the pace of mobilization and needs more funds to pay soldiers’ wages.
Ukraine spends most of its state revenues on funding the national defense effort, and relies on financial aid from its Western partners to be able to fund pensions, public sector wages and other social spending. The finance ministry said that total budget spending was up by nearly 11 percent, reaching 2.1 trillion hryvnias in the first eight months of the year.
The spending included about 965.8 billion hryvnias on soldiers’ wages, ammunition, equipment and other military needs, it said in a statement.
To raise additional funds for the army for the rest of the year, the government plans to increase taxes and will borrow more from the domestic debt market, the finance ministry said.
Kyiv has also agreed a deal to restructure over $20 billion of international debt, saving about $11.4 billion over the next three years.
The government plans to increase a war tax paid by residents to 5 percent from the current 1.5 percent, and will introduce additional war-related taxes for individual entrepreneurs and small businesses. It has already increased some import and fuel duties.
Parliament has given its initial approval to the planned tax hikes and is expected to vote for the bill in the final reading later this month or in early October.
Tax changes are expected to bring about 58 billion hryvnias to the budget this year and about 137 billion next year, officials have said.
Ukraine amends 2024 budget to channel more funds for defense
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Ukraine amends 2024 budget to channel more funds for defense
- Ukraine spends most of its state revenues on funding the national defense effort
- The government plans to increase a war tax paid by residents to 5% from the current 1.5%
IAEA board meets over Ukraine nuclear safety concerns
- The war in Ukraine “continues to pose the world’s biggest threat to nuclear safety,” Grossi said
- The mission will assess 10 substations “crucial to nuclear safety,” according to Grossi
VIENNA: The UN nuclear watchdog’s board of governors on Friday discussed nuclear safety in Ukraine, with several countries expressing “growing concern” following Russian attacks on the power grid.
Energy supplies to Ukraine’s nuclear plants have been affected as Russia has pounded its neighbor’s power sector since the start of its 2022 invasion, prompting fears of a nuclear disaster.
The war in Ukraine “continues to pose the world’s biggest threat to nuclear safety,” Rafael Grossi, director general of the International Atomic Energy Agency (IAEA), said when opening the board meeting.
The extraordinary meeting that lasted four hours was called after 13 countries led by the Netherlands expressed in a letter seen by AFP a “growing concern about the severity and urgency of nuclear safety risks” following a series of attacks.
Ukrainian ambassador Yurii Vitrenko told reporters before the meeting that it was “high time” for the IAEA board to discuss the situation.
A weeks-long IAEA expert mission to Ukrainian substations and power plants is under way and expected to wrap up next month, Vitrenko said.
The mission will assess 10 substations “crucial to nuclear safety,” according to Grossi.
Russian Ambassador Mikhail Ulyanov dismissed the board’s gathering as “absolutely politically motivated,” adding there was “no real need to hold such a meeting today.”
Last week, Ukraine’s Chernobyl nuclear power plant temporarily lost all off-site power.
Europe’s biggest nuclear power plant, Zaporizhzhia, occupied by Russian forces since March 2022, has also been repeatedly affected by fighting.
Earlier this month, Russia and Ukraine agreed to a localized ceasefire to allow repairs on the last remaining backup power line supplying Zaporizhzhia.
The line was damaged and disconnected as a result of military activity in early January.
The Zaporizhzhia plant’s six reactors have been shut down since the occupation. But the site still needs electricity to maintain its cooling and security systems.
Moscow and Kyiv have repeatedly accused each other of risking a nuclear catastrophe by attacking the site.
