The Cabinet of Ministers has made a decision to allocate an additional 10.8 billion UAH from the reserve fund of the state budget to strengthen the country’s defense capabilities. These funds will be used for the purchase and production of modern weapons for the Armed Forces of Ukraine.
This is reported by Finway
Funding for the defense industry
According to government information, of the allocated amount, 9 billion UAH will be directed specifically towards the acquisition of new weapons, as well as the repair and modernization of military equipment. The remaining nearly 2 billion UAH will be directed towards the development of the domestic defense industry — scaling up production capacities and the rapid implementation of innovative technologies that have already been tested on the battlefield.
“The additional 10.8 billion UAH is being directed by the government towards the purchase and production of weapons. The funds have been accumulated in a special fund of the state budget and allocated for defense needs,” the statement reads.
Sources of funding and budget prospects
Prime Minister Yulia Svyrydenko emphasized that these funds have been accumulated thanks to revenues from personal income tax, as well as licensing fees from the gambling business and lotteries. This has allowed for the formation of a special fund, from which defense needs are financed.
According to current forecasts, after amendments to the state budget for 2026, the total revenue volume is expected to increase by 2,291.3 billion UAH, reaching 5,195.9 billion UAH. Defense and security expenditures are planned to be increased to 1.56 trillion UAH, underscoring the strategic importance of financial support for the security sector amid the ongoing war.