This year, Ukraine has already spent ₴1T on defense; ₴500B is needed, and the government is proposing a new strategy.

In January-July, ₴1T (58.1% of total expenditures) was allocated from the state budget to the security and defense sector, including ₴161.6B in July, reports the Ministry of Finance. According to Prime Minister Denys Shmyhal, the state budget currently lacks more than ₴500B for defense needs, and authorities are planning a series of steps to source these funds. The planned efforts include:

• Increased domestic borrowing
• Increased income tax rates for banks, up to 50%, in 2024; for financial companies, up to 25%
• Expanding the base for the military levy and raising rates for certain cases.

“We are also introducing the principle of ‘fight or work’, which involves introducing several measures that will bring the labor market out of the shadows. These are important moments for increasing the number of jobs, raising wages in industries, and filling our budget,” the head of the government emphasized. Shmyhal added that the state budget for 2025 needs more than $15B for civilian needs.