Ukraine wants to increase defense spending by more than UAH 400 billion: the government has approved the draft law

The Cabinet of Ministers approved a draft law on amendments to the state budget for 2025, which proposes to increase state budget expenditures by UAH 449 billion to finance the Security and Defense Forces of Ukraine. This was announced by Prime Minister Denys Shmyhal during a government meeting, reports UNN.

Ukraine and its partners must force the aggressor to peace through force. To this end, we are working with our allies on new defense packages and sanctions, strengthening our economy, defense industry and weapons production. In the first 5 months of this year, the government allocated almost UAH 1 trillion for the defense and security of Ukraine. This is 2/3 of everything we spend from the state budget. Compared to the same period last year, we allocated 34% more funds for the army and security. (...) Today, the government is adopting a draft law on amendments to the State Budget for 2025. We propose to increase funding for the Security and Defense Forces of Ukraine this year by UAH 412 billion 

He noted that almost UAH 311 billion is provided for the Ministry of Defense, and UAH 100 billion is planned to be allocated to strengthen the capabilities of the Ministry of Strategic Industries, the National Guard, the Border Guard Service, the SBU, and the Main Intelligence Directorate.

We plan to allocate another UAH 6.3 billion to the Ministry of Digital Transformation, in particular for the development of defense innovations. UAH 6.1 billion is provided for the Ministry of Education so that from September 1, children in grades 5-11 in the frontline regions can receive free lunches in their schools. We propose to allocate another UAH 3.1 billion to the Ministry of Health for the purchase of medicines, in particular for the treatment of citizens with oncological diseases, viral hepatitis, rare orphan diseases, and hemophilia. In total, we plan to increase the expenditures of the general fund of the state budget by UAH 449 billion. The sources of coverage of these expenditures are an increase in budget revenues and an increase in domestic borrowing. We clearly understand how we will finance absolutely all expenditures this year. Constant work is underway with partners and international financial organizations to ensure that Ukraine has the necessary resources for protection and recovery 

Addendum

The representative of the Cabinet of Ministers in the Verkhovna Rada of Ukraine, Taras Melnychuk, clarified that the government approved the draft law "On Amendments to the Law of Ukraine "On the State Budget of Ukraine for 2025" regarding the financial support of the security and defense sector and the solution of priority issues".

The draft law is aimed at providing financial resources for urgent measures in the field of security and defense, aimed at countering the large-scale armed aggression of the Russian Federation against Ukraine and addressing other priority issues of the state. The draft law proposes to adjust the expenditure part of the state budget by UAH 397 billion 492.2 million, including an increase in expenditures under certain budget programs by UAH 448 billion 833.5 million (of which UAH 412 billion 374.9 million for the security and defense sector) and a reduction in expenditures and the provision of loans by UAH 51 billion 341.3 million 

He noted that to cover additional expenditures and ensure the balancing of budget indicators, it is proposed to increase state budget revenues by UAH 147 billion 492.2 million, including general fund revenues by UAH 137 billion 488.7 million and special fund revenues by UAH 10 billion 3.5 million, and financing of the general fund of the state budget through debt operations by UAH 250 billion.

The draft law also proposes to optimize and improve the conditions for attracting loans (borrowings) under state guarantees by business entities - residents of Ukraine for the implementation of programs related to increasing the defense capability and security of the state, which will ensure greater access for business entities - residents of Ukraine, who are strategic manufacturers of weapons and military equipment in Ukraine, to lending under state guarantees.

In addition, the draft law proposes to regulate issues regarding: the targeted use of balances of local budgets that were formed at the end of 2024 due to additional subsidies from the state budget to local budgets in order to direct them in 2025 to the purchase of school buses specially equipped for the transportation of low-mobility groups of the population and the arrangement of safe conditions in educational institutions that provide complete general secondary education; the direction of the balance of funds formed as of January 1, 2025, the source of which was the receipt of the special fund of the state budget from the part of the "military" tax on personal income and not used by the Ministry of Strategic Industries, to the Ministry of Defense for the implementation of measures for the purchase of special equipment; granting the government the right to reduce expenditures of the general fund of the state budget and the provision of loans from the general fund of the state budget under budget programs of the main managers of state budget funds and to increase expenditures of the general fund of the state budget of the main managers of state budget funds belonging to the security and defense sector (with the opening of new budget programs if necessary), etc.

Reminder

Earlier, UNN, citing MP Yaroslav Zheleznyak, reported that the Cabinet of Ministers of Ukraine approved amendments to the state budget for 2025 for UAH 412+ billion to increase spending on defense and security.