Government Approved State Budget 2025

Today, on September 13, the Government approved the draft State Budget of Ukraine for 2025, which will be submitted for consideration to the Parliament of Ukraine. The draft state budget for 2025 has been prepared on time.

“Ukraine's defense will be ensured. Funding for the security and defense sector is a key priority laid out in the draft State Budget of Ukraine for 2025. Expenditures to ensure effective resistance to the enemy will increase. All internal revenues and borrowings will be directed to the needs of Ukraine’s defenders. Assistance to citizens, support for veterans, and social services are also the government’s focus for the coming year,” said Ukraine’s Minister of Finance, Sergii Marchenko, during a Cabinet meeting.

The revenues of the general fund of the state budget for next year (excluding official transfers and grants) are projected at UAH 2,007.4 billion, while expenditures of the general fund of the state budget are UAH 3,643.6 billion.

The financial resources for the security and defense sector in 2025 will increase to UAH 2,223 billion, which constitutes 26.3% of the country’s projected GDP. The planned expenditures include monetary, material, and food provisions for the military, acquisition of weapons, military equipment, and support for the defense industry.

Ensuring social protection also remains a crucial priority. Support for war veterans – funding for support programs will remain at the current year’s level, with a focus on the allocation of investment projects.

Funds for internally displaced persons, people with disabilities, benefits, and subsidies, as well as transfers to the Pension Fund for pension payments, will be fully accounted for. Additionally, pensions will be indexed in 2025 (starting from March 1, 2025).

UAH 419.2 billion will be allocated for the support of socially vulnerable citizens, of which UAH 237.9 billion is directed to the Pension Fund for pension payments, UAH 127.9 billion for assistance to low-income families and individuals in difficult life circumstances, and UAH 42.3 billion for benefits and subsidies. Funds are also earmarked for programs supporting persons with disabilities and families with children.

Healthcare expenditures will amount to UAH 210.7 billion, including funding for the medical guarantees program and the provision of hospitals with medicines and medical supplies for the treatment of severe illnesses. Priorities include the creation of a unified medical space and providing housing for medical workers in rural areas.

The education budget is set at UAH 169.3 billion, which includes salaries for teachers, grants for higher education, provision of textbooks, and healthy nutrition for students.

Additionally, UAH 9.6 billion is allocated for the development of culture and the information space, UAH 4.0 billion for digital transformation, including funding for innovative projects to meet the needs of the security and defense sector (BRAVE 1), and UAH 14.0 billion for the support of scientific research, particularly in the defense, energy, and energy efficiency sectors.

As part of business support, UAH 18 billion is allocated to the Entrepreneurship Development Fund to provide concessional loans under the “5-7-9%” Program, and UAH 1.4 billion will be granted for business development.

For regional support, UAH 12.2 billion is allocated in the form of a subsidy to compensate for the tariff difference, allowing local budgets to ensure affordable public services for the population. UAH 9.4 billion will also be directed toward providing housing for citizens through the Ukrfinzhytlo program.

UAH 1 billion is earmarked for humanitarian demining of lands to ensure safety in areas affected by hostilities.

Additionally, UAH 1.75 billion is allocated for the State Decarbonization and Energy Efficiency Transformation Fund, aimed at reducing carbon emissions and improving the energy efficiency of the economy.

An additional grant of UAH 51.2 billion is provided to local budgets, which is UAH 17 billion more than in 2024. These funds will be directed, in particular, to enable local authorities to fulfill their mandates in de-occupied territories, contributing to the restoration of economic activity and improving living standards in regions affected by the war.

UAH 43.9 billion is allocated in the reserve fund for responding to unforeseen events. Social standards, including the minimum wage and subsistence level, will remain at the December 2024 level.

The budget also includes a new model of public investment project management, with a plan to allocate UAH 25 billion in 2025.

The state budget financing forecast for 2025 envisions a reduction of the budget deficit to 19.4% of GDP (compared to 20.6% in the current law on the 2024 state budget), which is in line with the indicators agreed upon with international partners.

Public borrowings in the general fund are planned at UAH 2,237.6 billion, including UAH 579.2 billion in domestic borrowings and UAH 1,658.4 billion in external borrowings. Not all external borrowing has yet been confirmed by international partners, requiring further persistent work.