On June 25, the government approved a bill on amendments to the state budget for 2025 to increase military spending for security and defense sector bodies by 412.4 billion hryvnias by the end of the year.
This was reported by the Ministry of Finance of Ukraine.
The department notes that the security and defense sector currently needs additional funds for critical needs, including the purchase of weapons, ammunition, and military equipment.
The main areas of expenditure are as follows:
- Ministry of Defense — 310.8 billion hryvnias;
- Ministry of Internal Affairs (MIA) — 84.1 billion hryvnias;
- Main Intelligence Directorate (known as GUR) — 4.5 billion hryvnias;
- Ministry of Strategic Industries of Ukraine — 4.5 billion hryvnias;
- Security Service of Ukraine (SBU) — 1.6 billion hryvnias;
- State Security Department — 0.5 billion hryvnias;
- State Special Communications — 64.5 billion hryvnias.
An additional 20 billion hryvnias are also provided for a reserve fund for unforeseen and urgent expenses and another 16.5 billion for other needs, in particular for the Ministry of Digital Affairs, the Ministry of Education and Science, and the Ministry of Health.
The total expenditures in the proposed bill amount to 448.8 billion hryvnias.
Where will the money for additional expenditures come from?
The over-execution of the budget revenue will amount to 147.5 billion hryvnias. This amount includes:
- 56 billion hryvnias from personal income tax;
- 23.8 billion hryvnia from corporate income tax;
- 20.3 billion hryvnia from transfers to the National Bank;
- 15 billion hryvnia from part of net profit and dividends;
- 8.8 billion hryvnias received from excise duty on imported tobacco products;
- 7.9 billion hryvnias from funds transferred by the Deposit Guarantee Fund for Individuals;
- 4.1 billion hryvnia from mandatory state pension insurance fees;
- 4.1 billion hryvnias from individual business transactions;
- 2.7 billion hryvnia from administrative fines in the field of traffic safety;
- 8.9 billion hryvnia from other revenues.
Another 51.3 billion hryvnias will come from savings in expenditures, 184.9 billion from an increase in domestic borrowing, and 65.1 billion from a decrease in payments on domestic public debt.
Next, the draft law must be considered by the Verkhovna Rada of Ukraine, and after that, signed by the president.
- The state budget for 2025 included record expenditures of 3.94 trillion hryvnias. Of this, defense expenditures amounted to 2.22 trillion.
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