The Verkhovna Rada has made changes to the state budget by UAH 40 billion. Where will the money go?

On August 20, the Verkhovna Rada adopted in the second reading and as a whole Bill No. 13439-3, which introduced amendments to the state budget by UAH 40 billion.

This was reported by the MP from “Voice” Yaroslav Zheleznyak and representative of “Servant of the People” Roksolana Pidlasa.

223 MPs voted pro.

The document mainly concerns non-military expenditures. Among the main items for which it is proposed to increase spending are:

• UAH 25.5 billion — replenishment of the state budget reserve fund (unforeseen military and humanitarian expenditures), of which UAH 8 billion can be directed to “Ukrzaliznytsia”;
• UAH 4.3 billion for the Ministry of Digital Affairs (UAH 1.4 billion will go to the purchase of special equipment, drones and equipment, and another UAH 2.8 billion will go to grants for the development of production in the defense tech sector);
• UAH 4.6 billion — nutrition for primary school students in all regions and grades 5–11 in front-line territories;
• UAH 3.2 billion — purchase of medicines for the treatment at state expense of patients with cancer, viral hepatitis, rare orphan diseases, hemophilia, etc.;
• UAH 1.5 billion — a subvention to local budgets to develop a network of military lyceums that provide patriotic education for children;
• UAH 1.2 billion — support for war veterans and their families (payment of cash assistance and compensation under insurance policies).

Pidlasa added that separate solutions were provided to support IDPs. In particular, UAH 1 billion was redistributed for the construction of new housing or the reconstruction of premises for IDPs.

It also provides for the possibility of local governments using free balances on accounts to purchase housing or provide housing loans to IDPs.

As Pidlasa explained, these expenditures were balanced by reducing other non-military expenditures by UAH 36.7 billion, as well as redirecting part of the bank profit tax from the Kyiv budget to the general fund of the state budget (UAH 8 billion).

What preceded

Bill No. 13439-3 was passed in first reading on July 16. It provided for the allocation of additional funds not only for defense, but also for other sectors.

However, during political consultations, the Verkhovna Rada decided on July 30 that these changes to the budget could not be considered in the chamber.

Instead, on July 31, the Verkhovna Rada adopted as a basis and in its entirety Bill No. 13573, which provides for an increase in defense spending by over 400 billion hryvnias, while Bill No. 13439-3 left only non-military spending.

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