In January 2024, Ukraine may face problems with financing social payments. Pensions and social assistance may be delayed if the United States stops providing assistance.
Such assumptions about the development of events were voiced by the head of the Budget Committee of the Verkhovna Rada, Roksolana Pidlasa, in an interview with Forbes.
Massive delays in payments since January
Such a scenario is quite realistic due to the cessation of US funding. It is known that the state budget for 2024, recently adopted by the Verkhovna Rada and signed by the President, contains a very large deficit of UAH 1.57 trillion.
“Without US assistance, we may face some difficulties with social and humanitarian spending in January,” Pidlasa said.
The Ukrainian authorities hoped to cover it with international funding. Because the money received from taxes in Ukraine goes to finance the army. Thus, the financing of the public sector has been on the shoulders of Western partner countries for two years.
Meanwhile, the United States has blocked another package of financial support for Ukraine. The issue was not even put to a vote.
According to Republican senators, they may vote to provide financial assistance to Ukraine if the US government tightens migration policy in the southern US, including on the border with Mexico. So far, they have no unity with the Democrats on this issue. That is why the situation is “hanging in the air”.
President Joe Biden’s address, in which he said that Ukraine’s loss in the Russian-Ukrainian war would lead to the United States fighting Russia, had no effect.
It is not yet known whether there will be money to cover the costs of paying pensions, social assistance, and salaries to public sector employees.
