Ukraine has announced a reduction in the government budget to co-host the Euro 2012 finals by more than a fifth, with the $2bn (£1.3bn) cut from the original $9bn affecting spending on the building of motorways and other vital infrastructure, suggesting supporters' enjoyment of the tournament could be severely affected.

But Ukraine's deputy prime minister, Borys Kolesnikov, denied that the 22% slash in investment means fans – he estimated 750,000 people will visit Ukraine during the tournament could struggle to move between the four cities where matches are to be played.

Kolesnikov told People's Daily Online in China: "We have fallen behind the schedule.

"We planned to spend much on constructing highways in the country but [are] now forced to concentrate just on the most strategic roads to link airports, stadiums, hotels, roads to the state border, as well as those around the host cities and towns related to the places of residence. I think we'll spend no more than $7bn."

Kolesnikov also seemed to suggest that co-hosting Uefa's premium national competition with Poland could result in the country losing money.

He said: "It is not easy to say how much the country would earn. What is clear is the fact that we will have modern stadiums, airports and new infrastructure. That is the real treasure."

Half the Ukraine's government estimate of the overall $18bn budget is to come from private investment.