Ukraine parliament backs nearly $10 billion defense budget increase in first reading
Ukraine's parliament approved a Hr 412.4 billion ($9.8 billion) increase in defense spending in the first reading, Ukraine’s Finance Ministry announced in a press release on July 16.
The budget amendment, which requires additional parliamentary approval, aims to bolster Ukraine’s military capabilities amid the ongoing war with Russia.
The additional financing would bring the total budget for security and defense in 2025 to around $50 billion, or 26% of Ukraine's GDP, and would enable Ukraine's military to procure more weapons, ammunition and military equipment, the government said.
The Defense Ministry, which is responsible for payments to military personnel, would receive the largest allocation at Hr 311 billion ($7.4 billion), according to the law's draft. The Interior Ministry would receive Hr 84 billion ($2 billion).
Other security agencies would also receive funding increases totaling $1.5 billion, including military intelligence, the Security Service, and the State Protection Department.
Beyond traditional functions, military intelligence conducts sabotage operations deep inside Russia, including a recent pipeline explosion in Siberia that supplies the Russian military-industrial complex.
The Security Service handles counterintelligence and special operations, with a recent example of Operation Spiderweb, a drone attack targeting Russian heavy bombers.
The State Protection Department provides security for government officials.
The spending boost brings total additional expenditures in the proposed 2025 budget amendments to Hr 457 billion ($10.9 billion), according to the Finance Ministry.
An additional Hr 15.5 billion ($370 million) has been allocated for other ministries not directly related to defense, including digital transformation, education and health.
To finance the increased spending, Ukraine plans to boost budget revenues by Hr 155.5 billion ($3.7 billion) mainly through higher-than-expected tax collections. The government also intends to increase domestic bond placements while reducing debt payments.
Now-former Prime Minister Denys Shmyhal announced in May that Ukraine's external financing needs to cover the country's budgetary deficit are fully met for 2025. But Ukraine needs over $40 billion in foreign aid for 2026 to sustain its economy and war effort.
