The Ukrainian Cabinet of Ministers has approved a draft law amending the 2025 state budget, increasing expenditure by UAH 397.5 billion [approx. US$9.52 billion].

Source: Ekonomichna Pravda, citing the draft law

Details: Proposed funding increases include:

• Ministry of Internal Affairs: UAH 84.24 billion (US$2.02 billion), raising its total to UAH 522.5 billion (US$12.51 billion), with additional funding for the State Border Service (UAH 45.9 billion or US$1.1 billion), National Guard (UAH 24.5 billion or US$586.80 million) and National Police (UAH 13.73 billion or US$328.85 million).
• Ministry of Veterans Affairs: UAH 53.5 million (US$1.28 million).
• Ministry of Defence: UAH 338.2 billion (US$8.10 billion), including UAH 114.48 billion (US$2.74 billion) for the activities of the Armed Forces (covering military financial support) and UAH 194.35 billion (US$4.65 billion) for equipment purchase and repair. A new expenditure item, "Implementation of measures to provide special machinery and equipment", is proposed at UAH 26.54 billion (US$635.66 million), bringing total Ministry of Defence spending to UAH 1.9 trillion (US$45.51 billion).
• Ministry of Education and Science: UAH 5.9 billion (US$141.31 million), including UAH 4.6 billion (US$110.17 million) for a subvention to local budgets for student meals and UAH 1.5 billion (US$35.93 million) for renewing military lyceums’ material and technical base [a lyceum is a specialised secondary school – ed.]. However, spending on national education measures will decrease by UAH 191.6 million (US$4.59 million).
• Ministry of Health: UAH 2.77 billion (US$66.35 million), primarily for medical programmes and comprehensive measures.
• Ministry of Strategic Industries: UAH 4.5 billion (US$107.78 million), increasing to UAH 59.76 billion (US$1.43 billion).
• Ministry of Digital Transformation: UAH 6.43 billion (US$154.01 million), raising its total to UAH 10.6 billion (US$253.88 million), including UAH 2.77 billion (US$66.35 million) for the Innovation Development Fund, UAH 3.5 billion (US$83.83 million) for special innovative technologies, and funding for the new State Agency PlayCity (replacing the Commission for Regulation of Gambling and Lotteries).
• Ministry of Development of Communities and Territories: UAH 211 million (US$5.05 million), with UAH 240 million (US$5.75 million) for the Energy Efficiency Fund, though State Aviation Service spending will decrease.
• Ministry of Finance: UAH 231 million (US$5.53 million) for the State Customs Service, UAH 182 million (US$4.36 million) for the State Tax Service, and UAH 20 billion (US$479.02 million) for the Reserve Fund, but a UAH 46.7 billion (US$1.12 billion) reduction in state debt servicing (mainly due to non-payment of GDP warrants).
• Main Directorate of Intelligence: UAH 4.56 billion (US$109.22 million), raising its total to UAH 29.7 billion (US$711.35 million).
• Security Service of Ukraine: UAH 1.56 billion (US$37.36 million), raising its total to UAH 43.25 billion (US$1.04 billion).
• State Security Administration: UAH 505 million (US$12.10 million), increasing its total to UAH 4.4 billion (US$105.38 million).

The draft law also reduces funding for several programmes, most significantly:

• State Service of Special Communications and Information Protection: UAH 21.2 billion (US$507.77 million) for a total of UAH 33.8 billion (US$809.75 million). The Ministry of Finance notes that this service met its UAH 33.78 billion (US$809.27 million) expenditure plan for January–May 2025, meaning no further funding may be available this year if changes are adopted.
• Ministry of Energy: UAH 240 million (US$5.75 million).
• Ministry of Agrarian Policy and Food: UAH 227 million (US$5.44 million).
• National Anti-Corruption Bureau (NABU): UAH 122.56 million (US$2.94 million).

Overall, the budget expenditure plan will rise by UAH 397.49 billion (US$9.52 billion) to UAH 4.38 trillion (US$104.87 billion).

Funding for these increases will come from a UAH 147.5 billion (US$3.53 billion) increase in tax collection and a UAH 250 billion (US$5.99 billion) increase in domestic borrowing.

The changes will increase the state budget deficit by 3% and raise the marginal state debt by UAH 184.88 billion (US$4.43 billion). The draft law allows exceeding this debt limit to utilise loans secured by frozen Russian assets.

Quote: Commenting on the draft law’s approval, Prime Minister Denys Shmyhal said that in the first five months of 2025, the government allocated nearly UAH 1 trillion (US$23.95 billion) for defence and security, representing two-thirds of state budget spending and a 34% increase compared to the same period last year.

Background: European Pravda previously reported that the state began using funds earmarked for year-end military salaries earlier this year, necessitating budget adjustments to ensure continued funding. The Ministry of Finance denied risks to military financial support, but the need for these changes suggests otherwise.

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