Cabinet of Ministers approves draft amendments to the State Budget 2025 to increase funding for defence sector
The Cabinet of Ministers has approved draft amendments to the State Budget 2025 aimed at increasing funding for the security and defence sector. MP Yaroslav Zheleznyak in his messages mentions an indicative figure UAH +317 billion additional general fund expenditures; other government estimates suggest a package in the range of hundreds of billions of hryvnias.
What the government has approved and how much money is spent on defence
The Cabinet of Ministers approved the text of the draft law on amendments to the state budget, which provides for a significant increase in spending - different publications give different figures, depending on which items are taken into account. According to published data, the government's package was estimated at around ≈ UAH 397-448 billion of additional expenditures in different versions of the document, and part of this package is directly aimed at the needs of the defence sector.
In his comments, MP Yaroslav Zheleznyak recalls UAH +317 billion as an approximate increase in general fund spending this year; this figure is given as one of the versions of the distribution of resources between the needs of the army and other budgetary needs (social expenditures, medical care, etc.). (This estimate was made public by the MP himself in his communications.)
Where exactly will the funds go
The priority is to provide logistical support to the Armed Forces, purchase ammunition and equipment, and increase the salaries of personnel. Some funds are also earmarked for other security and defence agencies. Government notes and briefings explain that the funding package is being formulated as a «comprehensive response» to current needs in the context of the ongoing conflict.
Risks and how they will affect the economy
Urgency vs sustainability. The immediate injection of resources will help meet current combat needs, but at the same time increases the burden on the financial system - sources of coverage (domestic borrowing, excess revenues, etc.) must be sought.
Transparency of distribution. Some members of the public and some MPs advocate a more detailed distribution of funds to avoid non-transparent spending.
Political discussion. The final version of the draft must go through the Council, where amendments, compromises, and redistribution of some amounts between sectors are possible.
What's next: a chronicle of the procedure
Once approved by the Cabinet of Ministers, the document will be submitted to the Verkhovna Rada for consideration in the session hall - voting in the first and second reading will determine the final form of the changes. At the same time, the Ministry of Finance is clarifying the sources of additional expenditures (revenue growth, domestic borrowing, and revision of certain items).
Why it is important for the frontline and for people
For the army, this means faster delivery of ammunition, equipment and increased salaries.
For citizens, this means a short-term increase in security, but also potential pressure on fiscal stability in the coming years.
For the market, additional government orders can stimulate the production of defence products and related industries.
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