Ukraine's 2025 budget includes $1.3 billion for weapons production, minister says
Ukraine's budget for 2025 envisages Hr 55 billion ($1.3 billion) for weapons production, Strategic Industries Minister Herman Smetanin said on Nov. 12.
Ukraine began actively developing its defense production after Russia's full-scale invasion in February 2022.
Some Hr 54.55 billion ($1.3 billion) will be directly allocated for the development and implementation of new technologies, and the expansion of defense production capacity, according to Smetanin.
The minister added that the 2025 figure is almost Hr 3.5 billion ($84.4 million) more than in 2024.
Another 500 million will be allocated to an affordable loans program for defense companies. This program, created in 2024, allows manufacturers to take out loans at 5% per annum. The state budget will cover the rest of the interest, according to the minister's statement.
The Cabinet of Ministers of Ukraine approved the draft state budget for 2025 on Sept. 13. The state expects to get Hr 2 trillion ($48.2 billion) in revenues, while expenditures are planned at Hr 3.6 trillion ($86.8 billion).
The draft state budget for 2025 envisages spending Hr 2.2 trillion ($53 billion) on Ukraine's defense, which is 26.3% of the country's projected gross domestic product (GDP).
Ukraine's proposed 2025 budget passed its first reading in parliament on Oct. 31. The budget law will go through additional rounds of consideration before lawmakers hold a final vote, expected by Dec. 1.
