This year, almost UAH 2 trillion has already been spent on security and defense from the budget
27 December 2024 18:21
uAH 1.8 trillion was spent by the general fund of the state budget on the security and defense sector in January-November 2024, which is 58.6% of the total amount of expenditures of the general fund of the state budget. This was reported by the Ministry of Finance of Ukraine, "Komersant Ukrainian" reports.
In particular, in November, UAH 206.4 billion was used from the state budget.
As explained by the Ministry of Finance, the funds were used for:
– financial support for military personnel, rank-and-file and senior officers, and police officers;
– purchase of military/special equipment, weapons, ammunition, defense products, personal protective equipment (helmets, body armor and other special equipment), fuels and lubricants, food
– medical support;
– other expenses for the operation of the relevant bodies and formations.
The Ministry of Finance emphasized that security and defense remain an absolute priority and the largest item of state budget expenditures.
How much did budget expenditures total this year?
According to the Ministry of Finance, state budget expenditures for the first 11 months of 2024 amounted to UAH 3,775 billion, which is more than was envisaged for this year.
The Law on the State Budget for 2024 (as amended in the fall) provides for annual expenditures of UAH 3737 billion. State budget revenues for 11 months reached UAH 2650 billion, which is also significantly higher than the annual plan (UAH 1911.5 billion). The state budget deficit for the first 11 months of the year amounted to UAH 1.1 trillion (the annual limit is UAH 1.85 trillion).
The Ministry of Finance reminds that the sources of financing the state budget are military bonds, loans from international financial organizations, as well as bilateral loans and grants.
One of the key reasons for the overperformance of revenues was the inclusion of part of the international aid as grants. In the first 11 months of the year, the amount of such revenues exceeded UAH 300 billion. In 2024, the state budget received UAH 416,317,936,663.94 from the sale of military government bonds.
How defense spending will be financed in 2025
The Law of Ukraine “On the State Budget of Ukraine for 2025” adopted by the Parliament on November 19 remains the No. 1 priority for security and defense.
According to the Ministry of Finance, in 2025, 26.3% of the country’s GDP will be allocated for security and defense: expenditures will increase to UAH 2.23 trillion, which is UAH 47.6 billion more than in the revised 2024 plan.
In particular, UAH 1.16 trillion is allocated to pay for the military, which is UAH 10 billion more than last year.
In addition, spending on weapons and military equipment is increasing. In 2025, UAH 739 billion is allocated for this purpose, which is UAH 34.1 billion more than in the previous year. This funding will allow for the purchase of the latest weapons systems and technical upgrades of the army, which is important for the effective conduct of combat operations.
Special attention is paid to the development of the defense industry. Funding for the Ministry of Strategic Industry, which is responsible for modernizing the defense industry, will increase to UAH 55.1 billion. This is UAH 15.3 billion more than in 2024, and these funds will be used for the technological upgrade of production facilities, which will help increase the country’s defense capability.
There is also an increase in the financing of the purchase of drones – in 2025, UAH 46.9 billion will be allocated for this purpose, which is UAH 3.6 billion more than in 2024.
Thus, according to the Ministry of Finance, military expenditures include monetary, material and food supplies for the military, the purchase of weapons, military equipment and support for the defense industry.
