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Ministry of Finance: Parliament approves increase in State Budget spending to boost country's defense capabilities

Ukraine Government

Ministry of Finance of Ukraine, posted 21 October 2025 16:10

The Verkhovna Rada of Ukraine has adopted the Law "On Amendments to the Law of Ukraine "On the State Budget of Ukraine for 2025" regarding financial support for the security and defense sector." The document provides for an increase in state budget expenditures by UAH 324.7 billion to strengthen the country's defense potential.

Ukrainian Finance Minister Serhii Marchenko stressed that the decision was a consistent response by the state to the challenges of war and the need to provide the Armed Forces with everything they need.

"We understand that the situation is constantly changing, and therefore an increase in spending to effectively resist aggression is a necessity. With the support of its partners, the Government has the resources to cover the additional costs necessary for the defenders of Ukraine. The state guarantees them adequate support, from weapons and equipment to cash payments and social protection for military families," Serhii Marchenko said.

He also underlined that Ukraine would receive part of the resources from the European Union - funds secured by income from frozen russian assets, within the framework of the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative.

Key parameters of changes:

Total additional expenditures - UAH 324.7 billion, including:

• UAH 310.5 billion - under the general fund, including:

- UAH 156.1 billion - for monetary support with accruals (of which UAH 155.5 billion for the Ministry of Defense);

- UAH 99.1 billion - for the purchase of weapons and military equipment (of which UAH 90.6 billion is for the Ministry of Defense);

- UAH 55.3 billion - other expenditures to ensure the current activities of the security and defense sector.

• UAH 14.3 billion - from a special fund financed by a portion of personal income tax (PIT) from the monetary allowance of military personnel, police officers, and rank-and-file and senior personnel, of which:

- UAH 8.6 billion - for the Ministry of Defense of Ukraine (reform and development of the defense-industrial complex, procurement of weapons, equipment, and supplies);

- UAH 4.3 billion - for the State Service of Special Communications and Information Protection (procurement of special equipment and supplies);

- UAH 1.4 billion - for other administrators of funds in the security and defense sector (logistical support for military units).

Sources of coverage for additional expenditures:

• UAH 294.3 billion (EUR 6 billion) - funds from the European Union under the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative;
• UAH 20 billion - increase in state budget revenues, in particular due to growth in personal income tax revenues;
• UAH 1 billion - reduction of non-priority expenditures as proposed by the main fund administrators;
• UAH 9.5 billion - expenditure savings.

The law will come into force after it is signed by Ukrainian President Volodymyr Zelenskyy.

We remind you that on October 6, 2025, the Cabinet of Ministers of Ukraine adopted a decision to amend the Law of Ukraine "On the State Budget of Ukraine for 2025."