Ukraine’s proposed 2025 budget passed its first reading in parliament on Oct. 31, allocating approximately 26% of the country’s GDP to defense and military spending.
“The priority of next year's budget will also be security and defense. All taxes paid by people and businesses will go toward strengthening our defenders and military capabilities,” Prime Minister Denys Smyhal said on his Telegram channel.
Military and defense spending will grow by Hr 46 billion ($1.6 billion) compared to 2024, reaching over Hr 2.2 trillion ($53.4 billion).
According to Shmyhal, state spending will increase by Hr 535 billion ($13 billion) to Hr 3.6 trillion ($87.4 billion), while revenues are expected to reach around Hr 2.7 billion ($65.5 million), up Hr 411 billion ($10 billion) from 2024.
“Not a single amendment to meet the needs of the military, and those who today especially need state support, was taken into account,” opposition lawmaker Dmytro Razumkov said, criticizing the document on his Telegram channel.
Following today’s discussions, the budget law will go through additional rounds of consideration before lawmakers hold a final vote, expected by Dec. 1.
Ukraine’s state budget has increasingly relied on external support, including war bonds, IFI loans, and bilateral loans and grants, as the country’s war-torn economy falters.
A widening annual budget deficit, reaching 20.6% in 2023, led Ukrainian lawmakers to approve a tax hike in September—the first since the full-scale war began—a politically unpopular move as the country seeks new sources of funding for its expanding wartime budget.
Ukraine faces a $35 billion budget deficit next year, and with Russia’s war continuing into its third year with no end in sight, the country must secure funding to sustain its economy and finance the war effort.
Elsa Court
(Updated: )
