Ukraine’s 2025 Budget Includes $1.3 Billion for Weapons Production
The Ukrainian government has allocated Hr 55 billion ($1.3 billion) for weapons production in its 2025 budget.
This comes after Russia invaded Ukraine in February 2022, prompting the country to develop its defense production capabilities.
In addition to the funds for weapons production, Hr 54.55 billion ($1.3 billion) will be spent on developing new technologies and expanding defense production capacity.
The 2025 budget figure is almost Hr 3.5 billion ($84.4 million) higher than in 2024.
A program of affordable loans for defense companies will also receive an additional $500 million. This program, created in 2024, allows manufacturers to borrow money at a 5% annual interest rate. The state budget will cover all interest payments.
The Ukrainian Cabinet has approved the draft budget for 2025. The government expects Hr 2 trillion ($48.2 billion) in revenue and plans to spend Hr 3.6 trillion ($86.8 billion).
About 26.3% of Ukraine’s projected gross national product (GDP) is planned for expenditures, totaling Hr 2.2 trillion ($53 billion).
The parliament has passed the first reading of the proposed budget for Ukraine 2025. The budget law will go through further discussion before a final vote on December 1.
Note: All conversions are approximate and based on current exchange rates.