The Verkhovna Rada, during the parliamentary session, adopted changes to the state budget to increase expenditures for security and defense by 412.4 billion hryvnias.
The draft law No. 13573 was supported as a whole by 332 deputies.
The draft was submitted today by the leadership of the Rada as a replacement for a similar draft No. 13439-3, which was previously adopted in the first reading.
Additional expenditures for the prosecutor’s office and the withdrawal of 8 billion hryvnias from the Kyiv budget were removed from it.
The draft law proposes increasing the state budget’s expenditures for national security and defense by 412.4 billion hryvnias.
Additional expenditures under the general fund amount to 401.6 billion hryvnias, including for:
Ministry of Defense (together with the State Special Transport Service) – 310.8 billion hryvnias;
Ministry of Internal Affairs system (State Border Guard Service, National Police, National Guard) – 84.1 billion hryvnias;
Security Service of Ukraine – 1.6 billion hryvnias;
Main Intelligence Directorate of the Ministry of Defense – 4.5 billion hryvnias;
Administration of the State Special Communications Service – 64.5 million hryvnias;
State Protection Directorate – 505 million hryvnias.
To cover the additional expenditures, it is proposed to increase the revenues of the state budget by 147.5 billion hryvnias and financing of the general fund of the state budget through debt operations by 250 billion hryvnias: by increasing domestic borrowings by 184.9 billion hryvnias while simultaneously reducing the volume of debt repayment payments by 65.1 billion hryvnias.
The law includes a provision on a new distribution of the Personal Income Tax (PIT) starting from August 1, 2025:
60% – directed to the Ministry of Defense for the procurement of drones, weapons, military equipment (this is an additional 22.4 billion UAH for the Ministry of Defense, already included in the total increase amount);
30% – to the State Special Communications Service for drones;
10% – for the needs of brigades.
The main factors that influenced the revision of the state budget revenue forecast are the revision by the Ministry of Economy of certain macroeconomic indicators for 2025, in particular the average monthly salary and the profits of profitable enterprises, as well as an increase in actual revenues from certain income sources, including:
personal income tax and levy – by 56.0 billion UAH, including to the general fund – 46.0 billion UAH and to the special fund – 10.0 billion UAH (due to the growth of the actual average monthly salary of employees and an increase in state budget expenditures for the monetary support of servicemen);
corporate income tax – by 23.8 billion UAH (due to higher company profits and tax payments based on tax declarations for Q4 2024, the whole of 2024, and Q1 2025);
excise tax on imported tobacco products – by 8.8 billion UAH (due to increased cigarette imports this year);
part of the net profit (income) of business entities (state unitary enterprises and their associations) and dividends transferred to the state budget under the law – by 15.0 billion UAH (based on financial results for 2024);
funds transferred by the National Bank of Ukraine – by 20.3 billion UAH;
other revenues – by 23.6 billion UAH (including an increase in receipts from administrative fines and other sanctions by 3.9 billion UAH; mandatory state pension insurance fees from certain business operations by 4.1 billion UAH; other receipts – by 15.6 billion UAH, of which 7.9 billion UAH are funds transferred under legislation by the Deposit Guarantee Fund to the state budget as creditor claims to insolvent banks and surplus capital).
Previously, the Ministry of Finance was already leaning towards including a prolonged war and elevated spending in the draft budget for 2026. It is planned that expenditures will remain at the current year’s level.
Verkhovna Rada approves massive security spending increase: Over UAH 400 bln – RBC-Ukraine
