Government of Ukraine Approved Amendments to the 2025 State Budget

Today, June 25, the Government approved a draft law on amendments to the 2025 State Budget to increase military expenditures.

For the fourth consecutive year, Ukraine has been operating under conditions of high uncertainty caused by the full-scale aggression by the russian federation. This situation requires the Government to be adaptive to the realities of war and ready to make decisions that will strengthen Ukraine’s defense capabilities.

Currently, the security and defense sector requires additional funding to meet critical needs, particularly for the procurement of weapons, ammunition, and military equipment.

The draft law proposes an increase in expenditures for security and defense institutions by UAH 412.4 billion by the end of the year.

Where will the funds be allocated?

• Ministry of Defense – UAH 310.8 billion
• Ministry of Internal Affairs – UAH 84.1 billion
• Defence Intelligence – UAH 4.5 billion
• Ministry of Strategic Industries – UAH 4.5 billion
• Security Service of Ukraine – UAH 1.6 billion
• State Security Administration – UAH 0.5 billion
• State Service for Special Communications and Information Protection – UAH 64.5 million

Additionally, UAH 20 billion will be allocated to the Reserve Fund for unforeseen and urgent expenditures.

Another UAH 16.5 billion is earmarked to meet other pressing needs (for the Ministry of Digital Transformation, Ministry of Education and Science, and Ministry of Health).

The total amount of expenditures under the amendments proposed by the Government to the 2025 State Budget amounts to UAH 448.8 billion.

What are the proposed sources to cover these additional expenditures?

1. Increased revenues, particularly from overperformance of planned budget revenue indicators – UAH 147.5 billion:

• Personal income tax – UAH 56.0 billion

• Corporate income tax – UAH 23.8 billion

• Funds transferred by the National Bank of Ukraine – UAH 20.3 billion

• Share of net profits and dividends – UAH 15.0 billion

• Excise tax on imported tobacco products – UAH 8.8 billion

• Funds transferred by the Deposit Guarantee Fund – UAH 7.9 billion

• Mandatory state pension insurance fee on specific business transactions – UAH 4.1 billion

• Administrative traffic safety fines – UAH 2.7 billion

• Other revenues – UAH 8.9 billion

2. Expenditure savings – UAH 51.3 billion

3. Increase in domestic borrowing – UAH 184.9 billion

4. Reduction of domestic debt repayment – UAH 65.1 billion

The proposed decision will help maintain financial stability while providing the necessary resources to effectively resist the aggressor.

The draft law must now be considered and approved by the Parliament of Ukraine and signed by the President of Ukraine.