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3 November, 2022
Ukraine’s State Budget in 2023: more than 18% of GDP for defence and security

On November 3, Verkhovna Rada adopted the Law on the 2023 State Budget. Just as in the first reading, the defence and security sector remains an absolute priority for financing the following year. 

295 members of the parliament supported the second reading of the budget. 35 of the MPs abstained: 3 representatives of the presidential faction together with European solidarity and Batkivshchyna factions. 

The financing of the defence and security sector remained the same: it constitutes UAH 1,141 trillion and is equal to more than 18% of Ukraine’s GDP.

In particular, the Ministry of Defence is to be financed with more than UAH 850 bln. 58% of it, UAH 494 bln, is to be distributed to support the Armed Forces of Ukraine, the veterans, the army’s training and medical care. UAH 355 bln more (41%) is to be allocated for procurement, modernisation and maintenance of the weaponry and military equipment. The rest of MoD’s less prioritised areas receive less than 1% of the Ministry’s budget.

Overall more than 1 trillion on defence and security purposes is divided the following way: 

  • Ministry of Defence - UAH 857,9 bln
  • out of which UAH 7,9 bln is allocated to the State Special Transport Service
  • Ministry of Internal Affairs - UAH 209,7 bln, in particular:
  • National Police  - UAH 68,6 bln
  • National Guard - UAH 47 bln
  • State Emergency Service - UAh 38,6 bln
  • State Border Service - UAH 33,2 bln
  • State Migration Service - UAH 4,3 bln
  • Security Service of Ukraine - UAH 22,2 bln
  • Main Directorate of Intelligence - UAH 11,5 bln
  • State Special Communications Service of Ukraine - UAH 4,7 bln
  • Foreign Intelligence - UAH 4,6 bln
  • Ministry of Strategic Industries - UAH 2,6 bln
  • State Security Administration - UAH 2,1 bln
  • National Defence and Security Council - UAH 0,282 bln

In general, the budget’s income is provided for UAH 1,3 trillion. In the meantime, the expenses will constitute UAH 2,6 trillion. Such a deficit is expected to be covered with the help of Ukraine’s international partners.