Marchenko on increasing defense spending: no tax increases are expected

There is a need to appeal to the Rada for an additional increase in spending on the defense sector. Planned appointments are being fulfilled in full, but there is an unplanned need of the Armed Forces, which is determined by the martial law regime. This affects the budget balances, but they will be closed at the expense of internal resources, no tax increases are foreseen.

This was stated by Minister of Finance Serhiy Marchenko during the "Question Hour" to the government in the Verkhovna Rada, reports UNN.

Details

Marchenko commented on whether the government plans to revise the 2025 budget to increase defense spending.

Dear colleagues, indeed, we need to appeal to you (parliamentarians - ed.) for an additional increase in spending on the security and defense sector. First of all, this is due to the fact that our situation is changing quite quickly, dynamically, there is a need to purchase new types of weapons, military equipment and implement other decisions, there is an intensification of hostilities

The Minister stressed that there is an unplanned need of the Armed Forces of Ukraine, which is determined by the martial law regime.

Therefore, of course, we will appeal to you and all these decisions will be recalculated and meet the request of servicemen and the security and defense sector. We have planned appointments, I emphasize once again, are being fulfilled in full, but there is an unplanned need of the Armed Forces of Ukraine, which is determined by the martial law regime. Therefore, we react to it as a government and accordingly it affects the budget balances, but we will close these balances at the expense of internal resources, we do not foresee any tax increases

Supplement

Earlier, MP Yaroslav Zheleznyak stated that Ukraine lacks money to purchase weapons - approximately 400 billion hryvnias. He believes that the budget needs to be revised.

On June 5, Minister of Finance Marchenko stated that the financing of the Armed Forces of Ukraine is currently insufficient, so the Ministry of Finance is preparing to revise the state budget for 2025. At the same time, a plan is being prepared in case of prolonged hostilities in 2026.

The National Bank is convinced that there will be no need or grounds for opening an emission channel. There is an understanding of how to act when there is a need to cover the state budget deficit, effectively and safely for macroeconomic stability.

 On June 6, Prime Minister Denys Shmyhal reported that if in the second half of the year there is a need to increase spending on financing the Armed Forces, the government will appeal to the Verkhovna Rada.