The Ukrainian parliament approved on Monday the allocation of an additional $9.8 billion for defense this year, Reuters reported, quoted by BTA.
The parliament supported amendments to the budget in the first reading, increasing the record 2.2 trillion hryvnia ($53.2 billion) in defense spending from the 2025 budget by another 412 billion hryvnia ($9.8 billion), the Finance Ministry said.
"The need to amend the 2025 budget is dictated by the need to supply the defense forces with more weapons, ammunition and military equipment," the ministry said in a statement. The government plans to raise additional funds by borrowing more money on the domestic debt market. It also expects higher tax revenues after Kiev's decision last year to increase various types of taxes, the finance ministry said.
Ukraine's economy has been relatively resilient during the war thanks to the adaptability of local businesses and billions of dollars in foreign aid from Kiev's Western allies, Reuters notes.
Ministry data show that since the start of the Russian invasion in February 2022, Ukraine has received more than $135.4 billion in foreign aid. The invasion reduced Ukraine's gross domestic product by nearly 30% in 2022, but the economy grew in 2023. and 2024.
This year, economic growth is forecast to be around 2.7%, the government said.
But Russia's economy is much more powerful. Russia has increased state spending on national defense by a quarter in 2025 to 6.3% of gross domestic product, the highest level since the Cold War. Defense spending accounts for 32% of Russia's total federal budget spending in 2025.