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On July 16, 2025, Ukraine’s parliament gave preliminary approval to a budget amendment that would increase defense spending by 412 billion hryvnias ($9.8 billion), reflecting the country’s urgent need to bolster its military capabilities as the war with Russia enters its fourth year.
The amendment raises Ukraine’s total defense budget for 2025 to a record 2.2 trillion hryvnias ($53.2 billion)—approximately 26% of the nation’s GDP. According to the Finance Ministry, the additional funds will be used to procure weapons, ammunition, and military equipment, with 216 billion hryvnias earmarked specifically for domestic production and acquisition.
To finance the increase, the government plans to expand domestic borrowing and expects higher tax revenues following last year’s fiscal reforms. The Defense Ministry will receive the largest allocation, followed by the Interior Ministry and other security agencies, including military intelligence and the Security Service.
This move comes as Russian forces continue their advance in eastern Ukraine, and peace negotiations remain stalled. Despite the ongoing conflict, Ukraine’s economy has shown resilience, supported by adaptable local businesses and over $135 billion in foreign aid since the 2022 invasion.
The budget measure must still pass a second reading before becoming law. If enacted, it will mark a historic investment in Ukraine’s defense infrastructure and signal Kyiv’s determination to sustain its resistance against Russian aggression.
