Cabinet plans to reduce spending on security and defense in 2025-2027 from UAH 2.2 to UAH 1.5 trillion

The Cabinet of Ministers plans to reduce spending on security and defense in 2025-2027 from UAH 2,226.8 billion to UAH 1,532.8 billion.

This is stated in the Budget Declaration for 2025-2027, approved by resolution No. 751 of June 28, Ukrainian News Agency reports.

"The amount of state budget expenditures for the medium-term period on security and defense has been determined for 2025 in the amount of UAH 2,226.8 billion; for 2026 - UAH 1,626.8 billion; for 2027 - UAH 1,532.8 billion," the document says.

At the same time, the Cabinet of Ministers notes that russia's armed aggression against Ukraine provoked a new arms race on a global scale, and it is assumed that as a result of such changes and the decline of security institutions, the probability of new wars and armed conflicts will increase in the medium term both on the European continent and beyond.

In view of this, the Cabinet of Ministers recognizes spending on security and defense as the main priority of the budget.

According to the document, the indicated amounts of expenditures will be reviewed during the preparation of bills on the state budget for the relevant year, taking into account the decisions of the state leadership, the duration and intensity of the military conflict.

The Budget Declaration states that in the medium term, the state budget policy in the field of national security and defense will be aimed at:

development of the necessary capabilities of the components of the security and defense sector for the organization of comprehensive defense of Ukraine by improving the system of mobilization of defense forces, operational equipment of the territory, national resistance, including the system of territorial defense and resistance movement;

ensuring the protection of the air and sea space of the state, creating a continuous surveillance system along the entire coast of the Black and Azov (after de-occupation) seas, protecting the state border of Ukraine;

ensuring the needs of the security and defense forces in weapons, military and special equipment, missiles and ammunition;

strengthening the capabilities of the defense-industrial complex through the introduction of modern technologies and closed cycles of production of weapons and military equipment, including on the basis of cooperation with partner states;

ensuring the gradual transition of the Armed Forces and other components of the defense forces to staffing on a contract basis, primarily in specialties that determine the combat capability of units, in compliance with the principle of ensuring equal rights and opportunities for women and men during military service;

proper maintenance of personnel of the security and defense forces of Ukraine, incentives for military service, implementation of social guarantees;

achieving interoperability with NATO in order to strengthen (build up) the capabilities of the security and defense forces and integrate Ukraine into the Euro-Atlantic security architecture;

clearing the territory of Ukraine from explosive objects.

As Ukrainian News Agency earlier reported, Roksolana Pidlasa, a member of the Verkhovna Rada from the Servant of the People faction and head of the parliamentary budget committee, said that a USD 5 billion "hole" in the state budget for 2024 needs to be closed in order to pay the money providing for the military in full and on time.

In May, the head of the parliamentary committee on finance, tax and customs policy, Danylo Hetmantsev (Servant of the People) announced that at least UAH 300 billion are needed to finance the army, and it is impossible to provide them by bypassing basic taxes, so the changes will apply to budget-forming direct and indirect taxes, including VAT, military fee and excise taxes, while control over the spending of funds will continue to be strengthened.

The state budget for 2024 provides for defense and security of UAH 1.7 trillion, or 21.6% of GDP.