The Verkhovna Rada in Ukraine confirmed on Friday, October 06, 2023, that it has ratified amendments to the State Budget for 2023. The adjustments result in an increase of budget expenditures by UAH 322.6 billion ($11.8 billion), as informed by MP Yaroslav Zhelezniak. The ratified draft law outlines increased funding for various ministries and departments, with a significant portion allocated to the security and defense sector.
Roksolana Pidlasa, the budget committee head, revealed that the bill (No. 10038) passed after intense debates, amplifies state budget expenses by UAH 317.1 billion ($11.6 billion). Of this amount, a substantial part (UAH 302.6 billion or $11 billion) is directed towards the security and defense sector. This increase is primarily financed by a rise in government borrowing (UAH 290.7 billion or $10.6 billion).
The Ministry of Defense, Ministry of Internal Affairs, and the Ministry of Social Policy are among the major beneficiaries of this boosted funding, with increments of UAH 211 billion ($7.7 billion), UAH 79 billion ($2.9 billion), and UAH 16.5 billion ($603 million) respectively.
Other departments such as the Ministry of Foreign Affairs, Main Intelligence Directorate, State Security Administration will also see their budgets rise by UAH 1.3 billion ($47 million), UAH 2.5 billion ($91 million), and UAH 230.5 million ($8.4 million) respectively.
Additional funding has also been allocated for the Ministry of Strategic Industries (UAH 4.3 billion or $157 million), Ministry of Education (UAH 572 million or $20.9 million), and the Economic Security Bureau (UAH 219 million or $8 million).
Furthermore, the State Service for Special Communications and the Foreign Intelligence Service will receive enhancements of UAH 570 million ($20.8 million) and UAH 500 million ($18.3 million) respectively. The Ministry of Energy will also experience a surge in funding by UAH 350 million ($12.8 million).
Finance Minister Serhiy Marchenko attributed this surge in military campaign funding to support from businesses, taxpayers, and war bonds placement, underlining the urgency of these budget amendments. He emphasized that international aid cannot be funneled towards military uses.
The changes also cover allowances for military personnel, special equipment procurement, defense industry development programs, provisions for internally displaced persons, textbooks for schools, and funding for National Guard, State Border Guard Service, Security Service of Ukraine, Foreign Intelligence Service, and State Special Communications.
These budgetary adjustments, approved by the Cabinet on September 12, set a record as they push total budget expenditures over UAH 3.39 trillion ($124 billion) and widen the deficit beyond UAH 2 trillion ($73 billion).
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