The government lacks UAH 300 billion for the war, but has funds to give money – media
9 September 13:40
By the end of 2025, Ukraine will lack about UAH 300 billion for defense needs, despite the fact that the government continues to spend money on various programs to support the population. This is stated in an article by Ekonomichna Pravda, according to "Komersant Ukrainian".
There is money for handouts
According to the article, the government of Yulia Svyrydenko almost every week decides to finance new programs: an increase in the National Cashback, grants for small entrepreneurs, a “schoolchildren’s package” and resilience centers. At the same time, the publication notes that in July, the budget expenditures were revised, increasing defense funding by UAH 400 billion, but this amount was not enough.
The problem lies in the specifics of financing: since the beginning of the war, partners have financed Ukraine for $144.7 billion, but it is forbidden to spend this money on military needs. Thus, the state budget actually consists of two parts: defense (funded by domestic revenues) and civilian (funded by foreign aid).
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According to the publication, since the beginning of 2025, Ukraine has attracted $29.5 billion from partners, while total “civilian” expenditures amounted to about $21 billion. The government has “extra” $6-7 billion in its accounts, which explains the constant initiatives to “give money away.”
No money for defense
The Ministry of Defense has estimated that by the end of the year they will lack UAH 417 billion. However, after a “productive discussion” within the government, this amount was “brought down” to UAH 280 billion. Taking into account the needs of other defense agencies, the total shortfall is approximately UAH 300 billion.
The publication reports that part of the additional need is due to an increase in spending on one-time financial assistance (OGA) in the amount of UAH 15 million to the families of fallen soldiers. In recent months, Ukraine has returned many bodies of fallen defenders in exchanges with Russia, which led to the simultaneous establishment of the deaths of hundreds of soldiers.
As reported by , in August, the procedure for paying the OGDs was changed: now, instead of 40 months, the remaining amount will be paid over 80 months.
“The purpose of the changes is to ensure stable financial support, taking into account the growth of defense spending,”
– the Defense Ministry wrote.
The publication notes that there are currently no sources to cover the additional costs. The Ministry of Finance is considering liquidity management and negotiations with partners to lift the ban on using part of the financial assistance for military needs, in particular the EU’s share of the ERA Loans program.
If the partners allow the EU’s share of about $20 billion to be used for military purposes, this will significantly ease the problems with financing the war. However, in this case, there will be another problem – the government will have to abandon generous programs of handouts at the expense of international partners.
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