Government planning budget sequestration - MP Vasylevska-Smahliuk

The Cabinet of Ministers is planning to sequester the state budget (forced spending cuts). A member of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy Olha Vasylevska-Smahliuk (Servant of the People faction) has announced this on her Telegram channel, the Ukrainian News agency reports.

"The government is planning a budget sequestration. The Ministry of Finance sent a letter with a request to revise and reduce spending in all departments today! The letter states that the state budget of Ukraine for 2026 has a deficit of UAH 1.9 trillion (18.5% of GDP). It is partially covered by funding from external partners. But "as of now, the EU is trying to reach an agreement between all member states to unlock critical financial support for Ukraine," the letter states," she said.

The MP added that since the timing of EU funding is still uncertain, and the budget deficit is huge, it is necessary to look for a solution "for yesterday."

As the Ukrainian News agency earlier reported, French Minister of Europe and Foreign Affairs Jean-Noël Barrot said that the European Commission is ready to use alternative mechanisms, to ensure that Ukraine receives the necessary funding on time, even if the main EU loan is not unblocked by the end of April.

Earlier, President Volodymyr Zelenskyy said that Ukraine risks not being able to prepare the energy system for the next winter due to the delay of a loan from the European Union for EUR 90 billion.