Ukraine's government unveils strict spending curbs as it redirects UAH 70 billion to the armed forces

Strict spending cuts take center stage

According to Рубрика — Суспільство: The Ukrainian government is imposing tight restrictions on all budget expenditures outside the defense sector. Prime Minister Serhiy Koretskyi announced the initiative in a speech to the Verkhovna Rada, saying that maintaining military funding is an absolute priority in the face of current security challenges. The cabinet has already identified UAH 70 billion in savings, and that money will be redirected to support defense needs.

Koretskyi stressed that the austerity drive will not undermine social commitments. Pension payments and salaries, he said, will continue without disruption.

"At the same time, we must meet all necessary social obligations. Therefore, when it comes to pensions and salaries, there will be no problems," the prime minister emphasized.

Budget strategy for 2027 and an audit of defense spending

When drafting the 2027 budget, the government will follow the principle of extracting maximum value from every hryvnia. Koretskyi called on lawmakers to take an active role in shaping the document.

"In preparing the budget for 2027, we must also proceed from the principle of maximum economy of every budget hryvnia. I ask deputies to actively join the process of forming the budget for 2027," he said.

The second priority, according to the prime minister, is a thorough review of how the defense ministry spends its money. Over the next month, officials plan to examine all outstanding issues to ensure budget resources are used effectively.

"Of course, we will analyze and study every hryvnia, but war is changing significantly, and war is becoming significantly more expensive. That is the reality, and we must respond to these challenges," Koretskyi stressed.

These steps are designed to sustain the country's armed forces amid prolonged military aggression and a difficult economic situation. The announcement comes as the government seeks to strengthen financial discipline while maintaining the country's defense capacity during wartime.

In light of the government's focus on military funding, it's important to note that all internal taxes will also be allocated to bolster defense and security efforts. This strategic shift underscores a broader commitment to maintaining national safety amidst rising challenges. For more details on how these financial measures will impact the defense sector, read about the new tax directives aimed at enhancing security.