The Cabinet of Ministers submitted to the Verkhovna Rada the draft state budget of Ukraine for 2025: what has changed in defense

The government approved and submitted to the Verkhovna Rada the draft State Budget of Ukraine for 2025. Funding for the country's defense has increased.

This was reported by the press service of the Cabinet of Ministers of Ukraine.

The draft State Budget of Ukraine for 2025 was approved by the Government on September 13, and on September 14, according to the bill card, it was sent to the Verkhovna Rada.

According to Minister of Finance Sergii Marchenko, Ukraine's defense will be ensured. Financing of the security and defense sector is a key priority of the Government, which is enshrined in the draft State Budget of Ukraine for 2025.

Expenditures to ensure effective counteraction to the enemy will increase. We will use all domestic revenues and borrowings for the needs of Ukraine's defenders. Assistance to citizens, support for veterans, social services are also in the focus of the Government for the next year," said Sergii Marchenko.

"The financial resource for the security and defense sector in 2025 will increase to UAH 2,223 billion, which is 26.3% of the country's projected GDP. The envisaged expenditures include monetary, material and food support for the military, purchase of weapons and military equipment, and support for the defense industry. In 2024, the defense and security sector received UAH 1 trillion 692.6 billion from the state budget, which is 22.1% of the country's GDP.

Funding for support programs for war veterans was maintained at the current year's level, taking into account the distribution of investment projects. Funds for IDPs, people with disabilities, benefits and subsidies, transfers to the Pension Fund for pensions will be taken into account in full. In addition, pensions will be indexed starting March 1, 2025.

Thus, UAH 419.2 billion has been allocated to support socially vulnerable citizens. Healthcare expenditures will amount to UAH 210.7 billion, including funding for the medical guarantee program and the provision of medicines and medical devices to hospitals.

UAH 169.3 billion is planned for education, including salaries for teachers, grants for higher education, textbooks and healthy meals for students.

UAH 9.6 billion is also allocated for the development of culture and information space, and UAH 4 billion for digital transformation. UAH 14 billion is allocated to support scientific research, in particular in the defense industry, energy and energy efficiency.

To support the regions, UAH 12.2 billion is provided in the form of a subvention to compensate for the difference in tariffs, which will allow local budgets to ensure the availability of utilities for the population.

UAH 1 billion is also allocated for humanitarian land demining, which will help ensure security in the areas affected by the hostilities. Social standards, including the minimum wage and subsistence level, remain at the level of December 2024.

Last year, the Cabinet of Ministers of Ukraine allocated UAH 3.5 billion to communities in Kyiv, Zaporizhzhia, Mykolaiv, Odesa, Sumy, Chernihiv, Kharkiv and Kherson regions to eliminate the consequences of Russia's armed aggression.

Next year's revenues of the general fund of the State Budget are envisaged at UAH 2007.4 billion, while expenditures amount to UAH 3643.6 billion. In 2024, budget revenues will amount to UAH 1 trillion 768 billion. Expenditures amounted to UAH 3 trillion 355 billion, with a deficit of UAH 1 trillion 571.5 billion, which was planned to be covered mainly by international assistance.

In January 2024, the Cabinet of Ministers allocated an additional UAH 792 million from the state budget reserve fund to strengthen the country's defense capabilities. Thus, the Ministry of Defense received UAH 657 million, the Defence Intelligence of Ukraine - UAH 10 million 524 thousand, the Ministry of Internal Affairs - UAH 100 million 769 thousand, and the Security Service of Ukraine - UAH 23.8 million.

Анна Бальчінос