Ukrainian President Volodymyr Zelenskyy is set to ask European allies to help fund pay raises for troops fighting a russian invasion to help ease a growing shortage of recruits.
Bloomberg reports.
"Previously, Europeans refused to provide funding for salaries for our military, only for armaments. Our military can be the weapons that will protect everyone," Zelenskyy told reporters in Kyiv on Thursday, July 24.
The publication claims that the government wants to motivate more volunteers by offering substantial payments to those who sign military contracts. However, increasing payments to soldiers will increase the burden on Ukraine's state budget, whose deficit last year exceeded 20% of gross domestic product amid huge military spending. Ukraine relies on tens of billions of dollars in aid from its foreign allies, who have so far rejected the idea of directly covering military costs.
At the same time, while the International Monetary Fund, which provides a loan program worth about USD 16 billion, is urging Kyiv to reduce the budget deficit, the government does not plan to raise taxes, Ukrainian Prime Minister Yulia Svyrydenko said in an interview with Bloomberg News. According to her, global donors have allocated only half of the approximately USD 75 billion needed for the budget over the next two years.
In addition, according to Zelenskyy, Ukraine needs USD 25 billion annually to produce drones, equipment for and missiles to defend against russia, which will lead to a budget deficit of USD 65 billion next year.
He said he has started discussing the issue with European Commission President Ursula von der Leyen, NATO Secretary General Mark Rutte, French President Emmanuel Macron and British Prime Minister Keir Starmer, as well as with US officials.
"This is a very complex topic," Zelenskyy added.
As Ukrainian News Agency earlier reported, in April, the Ministry of Finance denied a fake about non-payment of salaries to military personnel due to lack of funds, and the salaries will be paid.
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