In Ukraine, defense spending is set to increase sharply: the amount has been announced.

At a meeting of the budget committee of the Verkhovna Rada, draft laws on increasing defense spending in the state budget for 2025 were considered. Committee Chair Roksolana Pidlasa reported on this.

Contents of the draft laws

The first draft law provides for an increase in defense expenditures by UAH 412.4 billion. Of this amount, UAH 215.9 billion is planned to be spent on the purchase of weapons and military equipment, support for veterans and their families, the feeding of schoolchildren, and the development of the network of military lyceums.

'Amendments to Budget Code No. 13422-1 are part of the Defence City package', Pidlasa noted.

The second draft law provides for amendments to the Budget Code. In 2026-2028, the income tax of relocated defense enterprises will be evenly distributed between two local budgets - that of the 'mother' community and the community where the relocation takes place.

Taxes and additional funds

The draft law also stipulates that the income tax of the relocated enterprise will not be taken into account in the horizontal equalization for the receiving community. Thus, the subsidy for the receiving community will remain unchanged and will not depend on tax capacity. It is planned that these additional funds will be used to equip the infrastructure of the defense enterprise. Both draft laws will be considered at the nearest plenary sessions. Their implementation is expected to contribute to strengthening the country's defense capabilities and improving conditions for veterans and ATO participants. During the meeting of the budget committee of the Verkhovna Rada, draft laws on increasing defense expenditures for 2025 were recommended. An increase in funding for weapons procurement, veteran support, and other defense sector needs is anticipated.