The Ukrainian government plans to significantly increase funding for the defense sector in 2025. This was announced by Prime Minister Denys Shmyhal during the fourteenth meeting of the steering committee of the Ukrainian Donor Platform within URC2025.
This is reported by Finway
Increase in Defense Budget and External Support
According to recent amendments to the state budget law, at the end of June, the government allocated nearly $10 billion more in the draft budget for 2025 to strengthen defense capabilities. Total expenditures on defense and security next year will reach nearly $50 billion, which constitutes 26% of the country’s gross domestic product.
“The total financial resource for defense and security in 2025 will amount to nearly $50 billion. This is 26% of GDP,” the Prime Minister added.
The Prime Minister also noted that record funds are earmarked for the purchase of weapons – $16.4 billion, while domestic budget revenues are expected to be around $48.5 billion. According to him, it is critically important to ensure external financing, as this allows internal resources to be directed towards the defense of the state.
Funding Needs and the Role of Partners
In 2025, Ukraine needs to attract over $40 billion in external assistance. In comparison, this year it has already managed to secure $22 billion from international partners. Finance Minister Serhiy Marchenko emphasized that regular and predictable external support is necessary for the financial stability of the country, which is the foundation for the successful recovery of the economy and infrastructure.
Marchenko also stressed the importance of accelerating the process of confiscating frozen Russian assets. According to him, this is not only a matter of justice but also a significant source of future funding for the reconstruction of Ukraine.