Ukraine Allocates Nearly 60% of State Budget to Defense

Security and defense remain an absolute priority for the Ukrainian government, constituting a major expenditure in the country's state budget. The Ministry of Finance of Ukraine reported that, over the course of the current year's 11 months, expenditures from the general fund of the state budget for the security and defense sector amounted to 1,559.4 billion hryvnias (approximately 37.15 billion euros), representing 59.2% of the total general fund expenditures.

The Ministry of Finance highlighted that expenditures for the security and defense sector are funded exclusively from domestic tax revenues and military bonds. Notably, through military bonds, the Ukrainian government successfully attracted approximately 6.5 billion euros from Ukrainian citizens and businesses in 2023.

Funds allocated from Ukraine's state budget to the security and defense sector are directed towards:

• Financial support for military personnel, both rank-and-file and officers, as well as police officers.
• Acquisition of military/specialized equipment, weaponry, ammunition, defense-related products, individual protective equipment (helmets, body armor, and other specialized gear), fuel-lubricants, and food products.
• Medical support.
• Other necessary expenditures to ensure the activities of relevant agencies and formations.

A crucial component of Ukraine's defense capability remains foreign military aid provided by most NATO countries, including the United States, Germany, Finland, Spain, Italy, the Netherlands, Denmark, Sweden, Lithuania, and others.

In particular, on December 22, it was announced that Finland allocated another package of military aid to Ukraine amounting to 106 million euros. As usual, the Finnish side refrains from disclosing details regarding the content and delivery timeline of this aid to Ukraine due to operational considerations and ensuring safe delivery. The Ministry of Defense of Finland emphasizes that the aid was provided taking into account Ukraine's needs and the resource capabilities of the Finnish Armed Forces.

On December 20, it was also revealed that Italy is preparing to extend military assistance to Ukraine for another year. Through its decision, the Italian government proposes to extend authority for the transfer of arms, vehicles, and material-technical support to Ukraine.