Ukraine allocates about 31% of its gross domestic product to defense, currently the highest level in the world. This information was shared by the head of the Budget Committee of the Verkhovna Rada, Roksolana Pidlasa.
This is reported by Finway
Increased War Spending and Military Support
According to Pidlasa, the costs of the war for the Ukrainian budget have significantly increased. A year ago, one day of combat operations cost the country 140 million dollars, while now this amount has reached 172 million dollars per day. In comparison, last year Russia allocated about 150 billion dollars for the war against Ukraine.
“Defense costs our country enormous financial resources. And this price is rising,” Pidlasa stated.
She clarified that defense expenditures include not only salaries for military personnel, the purchase of ammunition and weapons, but also financial support for the wounded, missing persons, and families of fallen soldiers.
Funding Mechanisms and Future Plans
Pidlasa emphasized that Ukraine covers its defense expenditures mainly through its own revenues and domestic borrowing, despite challenging economic conditions. For the next year, the government plans to secure at least 120 billion dollars for defense needs. Half of this amount is expected to come from the state budget, while the rest will be military assistance in kind, which will be provided through international platforms, including “Ramstein,” PURL, SAFE, the Danish model, and others.
Pidlasa believes that it is worth considering the possibility of expanding legal and practical mechanisms for using direct budget support from partner countries to finance defense expenditures. Currently, only the United Kingdom allows its contributions to be used for Ukrainian military purchases; however, in her opinion, the EU and other countries should also join this effort.
She also supported the idea of using frozen Russian assets to finance Ukraine’s defense, emphasizing the feasibility of implementing a “Reparations Loan” or similar initiatives that would help cover urgent needs in the area of national defense.