**Ukraine to Revise 2025 Budget, Boost Defense Spending**
As the war with Russia continues to escalate, Ukraine is planning to revise its 2025 budget to allocate more funds for defense. The move comes as the country’s army battles a larger and better-equipped enemy along a long stretch of the frontline.
According to lawmaker Yaroslav Zhelezniak, Finance Minister Serhiy Marchenko has acknowledged that Ukraine needs to channel more funds to its armed forces. Currently, the 2025 budget allocates 2.23 trillion hryvnias ($53.7 billion), or about 26% of Ukraine’s gross domestic product, for defense spending.
However, with the war now in its fourth year, Ukraine’s defense spending has increased significantly. Finance ministry data shows that defense spending totaled 765 billion hryvnias ($18.4 billion) in the first four months of this year alone.
**A Desperate Need for More Funds**
The revised budget will likely be met with relief by Ukrainian servicemen, who have been struggling to maintain their equipment and supplies. Russia’s invasion has driven up demand for more weapons, ammunition, and funds to pay soldiers’ wages.
In fact, government officials are exploring ways to increase domestic revenues by reducing the shadow economy. While this may provide some much-needed funding, it is unlikely to be enough to meet the country’s growing defense needs.
**Foreign Aid Essential**
Ukraine relies heavily on financial aid from its Western allies to fund social and humanitarian spending. Since Russia’s invasion in February 2022, Ukraine has received about $133 billion in international financial support.
While this support has been crucial in helping Ukraine respond to the crisis, it is clear that more funds are needed to sustain the war effort. The revised budget will be closely watched by investors and analysts, who will be looking for signs of stability in a highly uncertain environment.
**Impact on Global Markets**
The revision to Ukraine’s 2025 budget is likely to have implications for global markets, particularly in the commodities and currency sectors. Investors may be cautious ahead of U.S. employment data and a widely expected policy rate cut from the European Central Bank.
As trade tensions continue to flare between Washington and Beijing, the dollar has weakened, and the situation remains volatile. The impact on Ukraine’s revised budget will be closely monitored by investors and analysts in the coming weeks and months.
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