Ukraine sharply increases defense spending: the amount has been named

The Budget Committee of the Verkhovna Rada recommended two bills in the first reading aimed at increasing defense spending in the state budget for 2025. This was reported by the head of the budget committee of parliament, Roksolana Pidlasa.

Contents of the bills

The first bill provides for an increase in defense spending of 412.4 billion hryvnias. Of this amount, 215.9 billion hryvnias is planned to be allocated for the purchase and production of weapons and military equipment in Ukraine. The budget is also supplemented for the purchase of medicines, support for veterans and their families, school meals, and the development of the network of military educational institutions.

'Amendments to the Budget Code No. 13422-1 are part of the Defence City package,' Pidlasa noted.

The second bill proposes changes to the Budget Code. The document suggests dividing the personal income tax of relocated defense enterprises equally between two local budgets in 2026-2028: the 'parent' community where the enterprise is registered and the community chosen for relocation.

Taxes and additional funds

The bill also provides that the personal income tax of a relocated enterprise is not counted in horizontal equalization for the receiving community. This means that its grant will not be reduced or increased depending on the tax capacity of the community. According to the authors' idea, these additional funds in the receiving community should be used to equip the infrastructure for the functioning of the defense enterprise.

Parliament plans to consider both bills at the upcoming plenary sessions.

The Budget Committee of the Verkhovna Rada plans to make changes to the state budget to increase spending on defense and support the military complex. This is aimed at strengthening Ukraine's defense capability and improving conditions for veterans and ATO participants.