Another 495 billion hryvnias for the defense of Ukraine. The Verkhovna Rada will review the state budget for this year

Today, July 18, the Cabinet of Ministers of Ukraine approved the law on changes to the state budget for 2024, reported a member of the Parliamentary Committee on Finance, Tax and Customs Policy Yaroslav Zheleznyak. The Verkhovna Rada (the Ukrainian Parliament) should consider the governmentʼs proposals in the near future.

According to Roksolana Pidlasa, the head of the Budget Committee, expenditures of the general fund of the state budget will increase by 500.3 billion hryvnias.

At the same time, it is proposed to allocate 495.3 billion hryvnias to defense needs. Namely:

• another 185.8 billion hryvnias for the purchase and modernization of military equipment and weapons of the Armed Forces of Ukraine;
• 147.2 billion hryvnias for the Armed Forces of Ukraine;
• 48.2 billion hryvnias for the National Guard of Ukraine;
• 41.9 billion hryvnias for the State Border Service of Ukraine;
• 40.7 billion hryvnias for the State Special Transport Service of the Ministry of Defense of Ukraine;
• 15.2 billion hryvnias for the National Police of Ukraine;
• 7.5 billion hryvnias for the Main Intelligence Directorate (known as GUR) of the Ministry of Defense of Ukraine;
• 5.1 billion hryvnias for the Security Service of Ukraine (SBU);
• 2.8 billion hryvnias for the State Emergency Service of Ukraine;
• 503 million hryvnias for the Foreign Intelligence Service of Ukraine;
• 258.3 million hryvnias for the State Service of Special Communications and Information Protection of Ukraine;
• 138.7 million hryvnias for the State Security Office of Ukraine.

The funds will be used for payments to the military and for the purchase of military and special equipment.

It is also proposed to increase spending on:

• replenishment of the reserve fund of the state budget — 4.5 billion hryvnias;
• a pilot project to install dental prostheses and provide scheduled dental care to war veterans — one billion hryvnias;
• monetary assistance to those released from Russian captivity — 400 million hryvnias;
• for the work of prisons — 100.8 million hryvnias.

They also plan to reduce costs by a total of 65.7 billion hryvnias. In particular, the costs of servicing the state debt will be reduced by 61.8 billion hryvnias, and by 3.9 billion — for the stateʼs fulfillment of guarantee obligations for borrowers who received loans under state guarantees.

Most of the additional expenses are planned to be covered thanks to the increase in state budget revenues by 214.5 billion hryvnias. However, 160.2 billion hryvnias will have to be borrowed from the domestic market. The government also initiated changes to the Tax Code to increase budget revenues.

In addition to changes in the parameters of the state budget for 2024, the government also initiates the settlement of a number of issues related to the organization of the budget process this year.

In particular, it is proposed to provide the government with the opportunity, by its decisions and with the agreement of the relevant creditor, to direct the loans that are attracted for the implementation of investment projects to the financing of the general fund of the state budget.

And they also ask to provide for the possibility of crediting the funds coming from the Ukraine Facility to the general fund of the state budget — a total of €5.27 billion.

It is also proposed to direct to the needs of GUR of the Ministry of Defense:

• part of the balance of funds of the special fund of the state budget of NCSREPU from regulatory contributions paid by companies providing electricity and communal services;
• 85 million hryvnias of the state enterprise "Ukraine Tourism" — in 2021, these funds were transferred to replenish the authorized capital;
• the balance of 150 million hryvnias of unused funds, which were transferred to the accounts of the state-owned enterprise "Ukrainian Institute of Intellectual Property" from the fees.

"Parliament and the government always respond promptly to the requests of the military, so I have no doubt that the proposed increase in spending will be supported by MPs," Pidlasa said.