UAH 21 bln is the amount by which the budget of Ukraine’s defence and security sector in 2021 will increase compared to 2020. Although the total budget will increase, the expenses on defence will somewhat decrease.
The draft budget plans for the security and defence sector UAH 267 bln. But defence expenses will be reduced by UAH 127 mln. Thus, next year the top management of Ukraine’s Armed Forces can 50% less than in 2020. The following expenses will be reduce from UAH 720 to 356 mln. At the same time, all other defence will increase. However, the increase will be not that big, it’s less than 1%:
+264 mln for the activity of the Armed Forces of Ukraine;
+1 mln for construction and purchase of housing for servicepeople;
+ 8 mln for ammunition/missile fuel/other munitions recycling.
At the same time, financing of the security sector will increase considerably. It is as a result of increasing the budget of the Security Service, the State Emergency Service, the National Police and other law enforcement bodies that the defence and security budget will increase by UAH 21 bln. The Parliament planned to consider the draft budget on 20 October at the extraordinary session but it didn’t happen due to criticism by MPs and the expert society.
Finally, the Parliament supported the budget in the first reading on November 5. That version of the budget includes a number of amendments that suggests bringing the defence expenses to this year's numbers. As of the end of November, the Cabinet of Ministers approved the new figures of the budget. Particularly, the MoD’s financing is about to receive its “lost” 100 mln.
Apart from that, the newly created Ministry of Strategic Industries will preliminarily receive UAH 2,5 billion (the first reading suggested only UAH 162 mln). However, the final numbers are about to be in December.