The President of Ukraine has signed the budget law for 2025, in which 60 percent of expenditure, i.e. over EUR 50 billion, is to be allocated to defense and security, said Prime Minister Denys Shmyhal. Volodymyr Zelensky also signed a law increasing the war tax from December 1.
“The priority of the budget is the protection of our country. It includes financing of security and defense forces, purchase and production of weapons, drones and equipment,” wrote Prime Minister Denys Shmyhal on Telegram. Defense spending also includes, among other things, remuneration for soldiers.
On Thursday, Zelensky also signed a law increasing the war tax for residents from 1.5 to 5 percent of personal income from December 1 and introducing a war tax for tens of thousands of private entrepreneurs.
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Volodymyr Zelensky Volodymyr Zelensky/X
The tax on commercial banks was also increased to 50 percent of profits, and on other financial institutions to 25 percent.
Ukraine's economy devastated, Russia increases military spending
As Finance Minister Serhiy Marchenko emphasized, the act is of key importance for financing the defense sector next year. According to the authorities, it will increase state budget revenues by UAH 140 billion (over three billion euros).
Full blown assault Russia on Ukraine devastated Ukraine's economy and severely damaged its infrastructure. State finances were also significantly weakened by the departure of millions of Ukrainians abroad.
Russia intends to increase military spending by 30 percent next year.
Main photo source: Volodymyr Zelensky/X