Rada increases non-military state budget spending by 40 billion. Where will funds go?
The Verkhovna Rada has adopted amendments to the law "On the State Budget of Ukraine for 2025" that provide for an increase in non-military spending totalling about UAH 40 billion.
The relevant draft law No. 13439-3 was supported in the second reading at a meeting on Wednesday by 229 MPs, the head of the parliamentary Budget Committee, Roksolana Pidlasa (Servant of the People), said on Facebook.
Initially, this draft law also envisaged an increase in defence spending by UAH 412 billion in 2025. However, the Verkhovna Rada adopted amendments to the state budget in this part on 31 July, and the President immediately signed the law on the same day.
According to the MP, the law provides for the allocation of an additional UAH 25.5 billion for the Reserve Fund of the state budget, which can be independently distributed by the government. Pidlasa noted that UAH 8 billion from the Reserve Fund could be used for subsidies for Ukrzaliznytsia.
In addition, the Ministry of Digital Transformation will receive UAH 4.3 billion in additional funding:
- UAH 1.4 billion will be allocated to the programme for the purchase of special equipment, drones and equipment for testing in combat conditions;
- UAH 2.8 billion - for grants for the development of production in the defence technology sector;
Another UAH 4.6 billion has been allocated for meals for primary school students in all regions and for grades 5-11 in the frontline areas.
An additional UAH 3.2 billion has been allocated for the procurement of medicines for the treatment of patients with cancer, viral hepatitis, rare orphan diseases, haemophilia, etc. at the expense of the state.
In addition, 1.5 billion hryvnias are allocated as a subvention to local budgets for expanding the network of military lyceums, and 1.2 billion hryvnias for supporting war veterans and their families (including cash assistance and compensation under mandatory motor insurance policies).
A further 1 billion hryvnias will be directed to the construction of new housing or the reconstruction of premises for internally displaced persons (IDPs). At the same time, the law allows local self-government bodies to use unspent funds in their accounts to purchase housing or provide housing loans for IDPs.
"These additional expenditures are balanced by reducing other non-military expenditures by UAH 36.7 billion (of which UAH 33.6 billion is a reduction in public debt service), as well as redirecting part of the bank profit tax from the Kyiv city budget to the general fund of the state budget (UAH 8 billion)," Pidlasa added.
As reported, at the end of June, the Cabinet of Ministers approved and submitted to the Verkhovna Rada a draft law amending the state budget for 2025. It envisaged an increase in spending by UAH 449 billion, including an additional UAH 412.4 billion for security and defence, but the Verkhovna Rada increased defence spending by a separate law on 31 July.
