Zelenskyy signs law on the State Budget for 2025: main expenditure items
28 November 2024 16:02
On November 28, President of Ukraine Volodymyr Zelenskyy signed the law on the state budget for 2025, which the Verkhovna Rada adopted on November 19. This was announced by Prime Minister Denys Shmyhal, "Komersant Ukrainian" reports
“The defense of our state remains the priority of the budget. Financing of the Security and Defense Forces, purchase and production of weapons, drones and equipment. We allocate UAH 2.23 trillion for this. we will allocate UAH 420.9 billion for social protection, UAH 217 billion for healthcare, and UAH 199 billion for education,” Shmyhal wrote.
In total, next year’s expenditures are planned at UAH 3.6 trillion. Revenues will amount to UAH 2.05 trillion.
“The government clearly understands that we will pass the next fiscal year with confidence. We have the coherence of the branches of power and the strong support of our partners,” Shmyhal said.
The main items of expenditures
Security and defense. Defense spending will increase to UAH 2.23 trillion, which is UAH 47.6 billion more than the revised plan for 2024. UAH 1.16 trillion is allocated for military salaries, which is UAH 10 billion more than last year.
Business support. UAH 18 billion has been allocated for entrepreneurship development under the 5-7-9% program, which is used to provide affordable loans to small and medium-sized businesses to stimulate the economy and save jobs. In addition, UAH 1.4 billion is earmarked for business grants and UAH 3 billion for the Innovation Development Fund.
Social protection. UAH 420.9 billion is allocated for this sector. In particular, transfers to the Pension Fund will amount to UAH 236.9 billion, payments of benefits and subsidies – UAH 42.3 billion, and UAH 1.1 billion is allocated for social programs, including the construction of housing for large families and the development of social services.
Support for veterans. The budget allocates UAH 10.5 billion, of which UAH 2.9 billion is allocated for the work of veterans’ support specialists, and UAH 1.7 billion for their physical, mental and psychological rehabilitation and professional adaptation. The Ukrainian Veterans’ Fund will receive UAH 348 million, and an additional UAH 4.9 billion in public investment will be used to build housing for veterans.
Education. Education funding will amount to UAH 198.9 billion. The bulk of this will be spent on teachers’ salaries (UAH 103.2 billion) and additional payments to teachers (UAH 12 billion). Also, UAH 1.4 billion is allocated for the purchase of textbooks, UAH 28 billion for grants for higher education, and UAH 11.8 billion is allocated for the modernization of the material and technical base of educational institutions and the construction of shelters.
Healthcare. UAH 217 billion has been allocated for the healthcare sector, of which UAH 175.5 billion will be allocated to the medical guarantee program and UAH 11.8 billion to the procurement of medicines and medical devices. As part of public investment, UAH 5.6 billion has been allocated for the modernization of medical facilities, the purchase of equipment and the creation of rehabilitation centers.
Support for communities. Local budget resources will increase by 15% to UAH 327.7 billion. The main revenues will come from personal income tax, which will increase from UAH 235.4 billion to UAH 280.9 billion, and an additional subsidy of UAH 36.5 billion, part of which will be used to support the de-occupied territories. UAH 4 billion is earmarked for compensation for destroyed housing, and UAH 1 billion for the State Fund for Regional Development.
Culture and media space. UAH 10.3 billion has been allocated to preserve cultural heritage and support theaters and concert organizations. Also, UAH 4.1 billion is planned for strategic communications and information security projects.
Science. Funding for the scientific sector will amount to UAH 14.5 billion, which will be used to support research projects, infrastructure modernization, and priority developments in the defense industry and energy security.
Digital transformation. UAH 4 billion is allocated for the development of digital technologies. Key projects include the expansion of the Diia portal, e-government, and security innovations.
Sports. Expenditures on sports will amount to UAH 5.7 billion to support the Olympic and Paralympic movement, physical education, and training of athletes for international competitions.
On October 31, 247 MPs supported the draft state budget for 2025 in the first reading.
As you know, the Ukrainian parliament abandoned the idea to raise prosecutors’ salaries in 2025 the day before. To do this, MPs, as Kommersant Ukrainian reported, had to adopt amendment No. 155 to the draft law on the State Budget for 2025.
