Ukraine's Budget Battle: Prioritizing Defence Amid Wartime Challenges

The Ukrainian parliament has approved the initial draft of the 2025 budget, allocating 26% of GDP to defense amid ongoing conflicts with Russia. The budget includes an increase in national security spending to 2.2 trillion hryvnias. Opposition voices criticize the budget for not addressing wartime needs sufficiently.

Ukrainian lawmakers have moved forward with the initial debate on the 2025 budget, setting aside about 26% of the country's GDP for defense as it continues to face Russian aggression. The draft budget outlines a substantial allocation of 2.2 trillion hryvnias, approximately $53.38 billion, for national security and defense, representing an increase of 46 billion hryvnias from the previous year.

Prime Minister Denys Shmyhal emphasized the prioritization of security and defense in the upcoming year's budget, assuring that taxes from citizens and businesses would support military capabilities. Anticipated total budget revenue stands at 2.7 trillion hryvnias, against expenditures projected at 3.6 trillion, according to the finance ministry.

As parliament scrutinizes the bill, submitting 2,099 amendments for consideration before an expected approval deadline of December 1, opposition lawmakers have criticized the draft. They argue it inadequately addresses the country's wartime realities. Dmytro Razumkov, a lawmaker, voiced these concerns, and members of ex-president Petro Poroshenko's party called for increased social payments and military funding. Meanwhile, Ukraine looks to secure $38.4 billion in foreign financial aid to supplement its social spending.

(With inputs from agencies.)