Ukraine's parliament approves nearly $10 billion defense spending boost
Ukraine's parliament on July 31 approved a bill to increase defense spending by Hr 412.3 billion ($9.8 billion), according to the official website of the Ukrainian government.
The amendment to the 2025 budget passed with 332 votes in favor. It raises total defense and security spending to an estimated $50 billion, or 26% of Ukraine's GDP.
Funding will be covered through increased tax revenues and expanded domestic borrowing.
Of the new allocation, Hr 115 billion ($2.7 billion) is earmarked for military salaries across all branches of the Armed Forces. Another Hr 216 billion ($5.1 billion) will go toward the purchase and production of weapons, equipment, and drones.
The remainder will be used to meet other front-line and logistical needs.
Starting Aug. 1, a new income tax revenue distribution mechanism will take effect to sustain the war effort. Some 60% of revenue will go to the Defense Ministry, primarily for drones and weapons.
Another 30% will be directed to the State Special Communications Service to support drone development and operations. The final 10% will be dedicated to combat brigades on the front.
The increase reflects Kyiv's strategy to grow domestic drone production and prioritize precision strike capabilities amid Russia's intensifying aerial and ground assaults.
Draft law 13439-3, which proposed amendments to the state budget and had already passed its first reading, was withdrawn from consideration. The parliament approved an alternative bill, 13573.
The withdrawn bill would have allocated an additional Hr 15.5 billion (around $370 million) to ministries not directly involved in defense, such as digital transformation, education, and health.
The new legislation is intended to address a pressing issue with August payments to the military, which could not be resolved under the previous bill due to political objections.
Then-Prime Minister Denys Shmyhal said in May that Ukraine's budget for 2025 is fully funded with external financing, but the government estimates over $40 billion in foreign aid will be required in 2026 to sustain military and economic stability.
