**Ukraine’s Parliament Approves Major Defense Spending Increase**
In a move aimed at bolstering the country’s military capabilities amid ongoing conflict with Russia, Ukraine’s parliament has approved a massive increase in defense spending. The Hr 412.4 billion ($9.8 billion) budget amendment is the first reading of a proposed law that requires additional parliamentary approval.
The increased funding will bring the total budget for security and defense in 2025 to around $50 billion, or 26% of Ukraine’s GDP. This significant allocation will enable Ukraine’s military to procure more weapons, ammunition, and military equipment, according to government officials.
**Breaking Down the Allocation**
The Defense Ministry, which is responsible for payments to military personnel, will receive the largest share of the funding, amounting to Hr 311 billion ($7.4 billion). The Interior Ministry will receive Hr 84 billion ($2 billion), while other security agencies such as military intelligence, the Security Service, and the State Protection Department will also see funding increases totaling $1.5 billion.
These security agencies play crucial roles in Ukraine’s war effort, with military intelligence conducting sabotage operations deep inside Russia, including a recent pipeline explosion that supplied the Russian military-industrial complex. The Security Service handles counterintelligence and special operations, such as Operation Spiderweb, a drone attack targeting Russian heavy bombers.
**Financing the Increase**
To finance the increased spending, Ukraine plans to boost budget revenues by Hr 155.5 billion ($3.7 billion) mainly through higher-than-expected tax collections. The government also intends to increase domestic bond placements while reducing debt payments. This move is part of a broader effort to strengthen the country’s economy and war effort.
**Implications for Ukraine**
The spending boost brings total additional expenditures in the proposed 2025 budget amendments to Hr 457 billion ($10.9 billion). An additional Hr 15.5 billion ($370 million) has been allocated for other ministries not directly related to defense, including digital transformation, education, and health.
While this increase demonstrates Ukraine’s commitment to bolstering its military capabilities, the country still faces significant financing needs in the future. In May, former Prime Minister Denys Shmyhal announced that Ukraine’s external financing needs are fully met for 2025. However, the country will require over $40 billion in foreign aid for 2026 to sustain its economy and war effort.
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