Ukraine Moves to Boost Defence Budget by $9.8 Billion
Ukraine’s parliament has given preliminary approval to a significant increase in military spending, endorsing an additional 412 billion hryvnias ($9.8 billion) for defence as Russia’s invasion enters its fourth year with no resolution in sight.
Lawmakers passed the amendment to the 2025 state budget in a first reading on Wednesday, raising the country’s record defence allocation to 2.2 trillion hryvnias ($53.2 billion), The Gaze reports, citing Reuters.
“The need to amend the 2025 state budget is dictated by the need to provide the defence forces with additional weapons, ammunition, and military equipment,” the Finance Ministry said in a statement.
According to Roksolana Pidlasa, head of the parliament’s budget committee, about 216 billion hryvnias will be directed toward the purchase and domestic production of weapons.
To finance the increase, the government plans to borrow more on the domestic debt market and anticipates higher tax revenues following last year’s tax hikes.
As Russian forces continue to push forward in eastern Ukraine, seizing village after village, analysts say both sides are also engaged in a parallel economic struggle.
Ukraine’s economy, though battered, has remained relatively resilient thanks to the adaptability of local businesses and more than $135.4 billion in foreign financial aid since the invasion began in February 2022, according to Finance Ministry data.
While Ukraine’s GDP fell by about 29% in 2022, modest growth followed in 2023 and 2024. The government forecasts a 2.7% growth rate in 2025.
Read more on The Gaze: (Re)Building Ukraine’s Economy as a Pillar of Regional Stability and Security