Ukraine faces severe budget deficit and parliamentary absenteeism

Ukraine is grappling with a significant budget deficit and legislative challenges amid the ongoing war. Fitch Ratings has confirmed Ukraine’s deeply speculative “CCC” credit rating, noting that without external donations, the state budget deficit could reach 28% of GDP. With external support, the deficit is projected to be 18% of GDP this year and 15.6% next year. Approximately 70% of Ukraine’s total expenditures are currently directed toward defense.

Compounding these economic pressures is a lack of legislative activity in the Verkhovna Rada. High rates of absenteeism among members of parliament have hindered the passage of critical bills required by the European Union, the International Monetary Fund, and other international donors. Some representatives have missed more than 90% of parliamentary votes, including Anzhelika Labunska, Stepan Ivahiv, and Yaroslav Dubnevych. The inability to pass these laws timely contributes to the country's severe budgetary shortfall.