Ukraine’s government approved the draft budget for 2025, on 13 September 2024, which prioritises defence and security spending, said Ukraine’s Prime Minister Denys Shmyhal on his official Telegram channel. Defence spending will increase to at least UAH 2.22 trillion and additional funds will be allocated for Ukrainian weapons, equipment, and drones.

“The priority for this budget is very clear—the country’s defence and security. We will again direct all domestic resources to these objectives,” Shmyhal said.

“Ukraine’s defence will be secured. Financing the security and defence sector is a key priority, which is included in the draft State Budget of Ukraine for 2025. Expenditures to ensure effective opposition to the enemy will increase. We will send all domestic revenues and borrowings to the needs of the defenders of Ukraine. Assistance to citizens, support for veterans, social services – is also in the Government’s focus for next year “, said Minister of Finance of Ukraine Sergei Marchenko.

Shmyhal announced that revenue is projected to reach UAH 2 trillion, while budget expenditures are set at UAH 3.6 trillion. The government plans to borrow UAH 2,237.6 billion for the general fund, which includes UAH 579.2 billion in internal borrowings and UAH 1,658.4 billion in external borrowings.

Shmyhal also said over UAH 400 billion will be allocated for social protection. Pensions will be indexed and subsidies will be paid to everyone in need. An additional UAH 211 billion will be directed to healthcare and  UAH 170 billion has been allocated for education.

The 2025 budget also has provisions for supporting businesses through subsidies and grants. Additionally, funds will be allocated for preferential loan programmes and entrepreneurship grants.

A notable addition to this budget is the introduction of a new model for managing public investment projects, aimed at enhancing the transparency and effectiveness of capital expenditures. This initiative will prioritise restoration efforts, energy projects, and the implementation of a new policy for veterans.

The 2025 draft budget is to be submitted to the Verkhovna Rada (parliament) of Ukraine.