New Funding Initiatives for Ukraine: 2025 Budget Revisions
The Cabinet of Ministers of Ukraine has submitted revised changes to the 2025 budget to the Verkhovna Rada.
This was reported by the chair of the budget committee, Roksolana Pidlasa.
Key highlights from the final government proposal. Total expenditures are set to increase by 449.8 billion UAH, of which:
- +412.4 billion UAH - defense spending (including +215.9 billion UAH for the purchase of weapons and equipment),
- +18.1 billion UAH - increase of the reserve fund,
- +4.6 billion UAH - funding for the meals of primary school students across all regions and grades 5-11 in frontline areas,
- +3.4 billion UAH - a new program from the Ministry of Digital Transformation for purchasing equipment and technology testing innovative defense solutions,
- +3.1 billion UAH - purchasing medications for the treatment of cancer, viral hepatitis, rare diseases, hemophilia, etc., at the state's expense,
- +2.77 billion UAH - to increase the statutory capital of the Innovation Development Fund (also from the Ministry of Digital Transformation),
- +1.5 billion UAH - subsidies to local budgets for the development of military lyceums aimed at patriotic education,
- +1.16 billion UAH - support for war veterans and their families (financial aid and insurance policy compensations),
- +0.8 billion UAH - continuation of the creation of the National Military Memorial Cemetery,
- +0.65 billion UAH - for the Ministry of Justice to cover salaries in the penitentiary system.
- According to Roksolana Pidlasa, the changes were primarily balanced by OVDP and exceeding revenue expectations:
- 184.9 billion UAH - increase in funds raised from OVDP,
- 147.5 billion UAH - exceeding and expected exceeding of budget's own revenues (mainly regarding personal income tax, profit tax, excise on imported goods),
- 65.1 billion UAH - decrease in expenditures for OVDP repayment,
- 46.7 billion UAH - reduction of expenses for debt servicing (interest on loans) due to currency exchange rates and restructuring,
- 3 billion UAH - decrease in expenses for ensuring government-guaranteed debts.
The Verkhovna Rada will consider the budget changes in the next two weeks.
