The government proposes increasing budget expenditures by more than ₴500B and raising taxes to obtain an additional ₴140B.

Ukraine’s government approved changes to the state budget that include a proposed spending increase of ₴500.3B, of which ₴495.3B would be directed to the security sector and defense. The head of the parliament’s budget committee, Roksolana Pidlasa, specified that the funds would be directed to military salaries and equipment purchase.

It is also proposed to reduce the costs of servicing the state debt by ₴61.8B. Additional expenses are planned to be covered by the state budget’s revenue increase of ₴214.5B, but another ₴160.2B will have to be borrowed from the domestic market.

The Cabinet of Ministers also prepared a draft law that would raise taxes by a total of ₴138.7B. Among other things, it would raise excise taxes on tobacco and soft drinks from September 1 as well as increase the military levy.

In addition, the parliament has already adopted a bill raising the fuel excise tax beginning on September 1. In 2028, the excise tax on fuel will increase to €359 per 1,000 liters.