**Ukraine’s Parliament Approves Record Defense Spending Boost**
In a move to strengthen its military in the face of ongoing conflict with Russia, Ukraine’s parliament has approved a significant increase in defense spending. The amendment to the 2025 budget allocates an additional Hr 412.3 billion ($9.8 billion), bringing total defense and security spending to an estimated $50 billion or 26% of Ukraine’s GDP.
This substantial increase reflects Kyiv’s strategy to prioritize precision strike capabilities and grow domestic drone production amid Russia’s intensifying aerial and ground assaults. The funds will be used to meet front-line and logistical needs, with Hr 115 billion ($2.7 billion) earmarked for military salaries across all branches of the Armed Forces and Hr 216 billion ($5.1 billion) dedicated to the purchase and production of weapons, equipment, and drones.
**New Tax Mechanism to Support War Effort**
Starting August 1, a new income tax revenue distribution mechanism will take effect to sustain the war effort. According to this mechanism, 60% of revenue will go directly to the Defense Ministry for drones and weapons, while 30% will be directed to the State Special Communications Service to support drone development and operations. The remaining 10% will be dedicated to combat brigades on the front.
This shift in tax revenue distribution is a significant change from previous years, where defense spending was not given such priority. It reflects Ukraine’s commitment to prioritizing military needs during these challenging times.
**Alternative Bill Withdrawn**
Draft law 13439-3, which proposed amendments to the state budget and had already passed its first reading, was withdrawn from consideration in favor of an alternative bill, 13573. The previous bill would have allocated an additional Hr 15.5 billion (around $370 million) to ministries not directly involved in defense, such as digital transformation, education, and health.
The withdrawal of the previous bill reflects the parliament’s decision to prioritize military spending over other government needs. This move has been seen as a response to pressing issues with August payments to the military, which could not be resolved under the previous bill due to political objections.
**Commentary**
Ukraine’s increased defense spending is a significant development in the country’s strategy to counter Russia’s aggression. The allocation of funds for domestic drone production and precision strike capabilities will likely enhance Ukraine’s ability to respond to Russian attacks.
However, this move also raises concerns about the economic burden on Ukrainian citizens. While the government estimates over $40 billion in foreign aid will be required in 2026 to sustain military and economic stability, it remains to be seen how effective these measures will be in addressing the country’s pressing needs.
As Tim Zadorozhnyy, a news editor at The Kyiv Independent, noted, “Ukraine’s budget for 2025 is fully funded with external financing,” but the government’s reliance on foreign aid raises questions about the sustainability of this approach.
**Read More**
For more information on Ukraine’s defense spending and its implications, please visit [kyivindependent.com](http://kyivindependent.com) @ kyivindependent.com.
