>**Delays in Western aid have contributed to a yawning $43.5 billion budget deficit, forcing Kyiv to scramble for funds to pay its army, the Ukrainian finance minister told the Financial Times on Sunday.**
>According to Serhiy Marchenko, delays in disbursing $27 billion in U.S. military aid, approved by Congress in April, have forced Kyiv to use funds initially earmarked for troop salaries to purchase essential weapons and ammunition.
>This situation has led to an alarming $12 billion increase in military spending, further straining Ukraine’s already stretched finances.
>The lack of timely aid also means that Ukraine has to balance its budget by cutting spending, selling state assets, and raising taxes to fund the ongoing war effort against Russian aggression.
>Marchenko urges the Western allies to accelerate the disbursement of a $50 billion loan, which would enable Ukraine to buy military supplies and prevent a deeper financial crisis.
>The loan, promised by G7 leaders, is set to be repaid using profits from €260 billion in frozen Russian central bank assets. However, loan’s finalization has been complicated by negotiations between the U.S. and the EU.
>The U.S. seeks assurances that the €260 billion in frozen Russian assets will remain inaccessible for the foreseeable future and is concerned that Hungary, led by pro-Russian Prime Minister Viktor Orbán, might obstruct this process as Budapest has repeatedly held up EU aid to Ukraine.
>**Kyiv’s domestic measures**
>As a result of this continued delays in foreign aid, Kyiv has enacted several domestic measures including debt restructuring, privatizations and tax hikes, in order to sustain its war effort against Russia.
>Furthermore, the Ukrainian government has proposed increasing the war tax on salaries from 1.5% to 5%, which could also be extended to those who are self-employed.
>“You can’t stop fighting. You need this money. So if you haven’t enough support from your partners, you will try to figure out how to find this money in your own resources,” Marchenko stressed.
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>**Delays in Western aid have contributed to a yawning $43.5 billion budget deficit, forcing Kyiv to scramble for funds to pay its army, the Ukrainian finance minister told the Financial Times on Sunday.**
>According to Serhiy Marchenko, delays in disbursing $27 billion in U.S. military aid, approved by Congress in April, have forced Kyiv to use funds initially earmarked for troop salaries to purchase essential weapons and ammunition.
>This situation has led to an alarming $12 billion increase in military spending, further straining Ukraine’s already stretched finances.
>The lack of timely aid also means that Ukraine has to balance its budget by cutting spending, selling state assets, and raising taxes to fund the ongoing war effort against Russian aggression.
>Marchenko urges the Western allies to accelerate the disbursement of a $50 billion loan, which would enable Ukraine to buy military supplies and prevent a deeper financial crisis.
>The loan, promised by G7 leaders, is set to be repaid using profits from €260 billion in frozen Russian central bank assets. However, loan’s finalization has been complicated by negotiations between the U.S. and the EU.
>The U.S. seeks assurances that the €260 billion in frozen Russian assets will remain inaccessible for the foreseeable future and is concerned that Hungary, led by pro-Russian Prime Minister Viktor Orbán, might obstruct this process as Budapest has repeatedly held up EU aid to Ukraine.
>**Kyiv’s domestic measures**
>As a result of this continued delays in foreign aid, Kyiv has enacted several domestic measures including debt restructuring, privatizations and tax hikes, in order to sustain its war effort against Russia.
>Furthermore, the Ukrainian government has proposed increasing the war tax on salaries from 1.5% to 5%, which could also be extended to those who are self-employed.
>“You can’t stop fighting. You need this money. So if you haven’t enough support from your partners, you will try to figure out how to find this money in your own resources,” Marchenko stressed.
>Source: Financial Times, TVP World