Tuesday, 02 January 2024 12:17 GMT

Ukraine Greenlights USD66.4B Defense Budget for 2026


(MENAFN) Ukraine's legislature greenlit the nation's 2026 fiscal blueprint Wednesday, dedicating nearly one-third of total expenditures to defense and security operations as the grinding Russia-Ukraine conflict enters its fourth year.

The Verkhovna Rada passed the budget legislation with backing from 257 lawmakers, parliamentary records confirmed.

Ukrainian President Volodymyr Zelenskyy thanked legislators who endorsed the spending package.

"This is an important signal of Ukraine's resilience and stable financial provision for next year's needs. The priorities are clear: guaranteeing our defense, social programs, and opportunities to restore life after Russian strikes," Zelenskyy said on Telegram.

He emphasized that Ukraine continues coordinating with international allies to secure requisite financial backing for the embattled nation.

"This budget provides funding for defense, social support, and economic development. The country directs all available resources to the main thing – the defense and defense capability of Ukraine," said Finance Minister Serhii Marchenko in a statement.

The finance ministry disclosed that 27.2% of Ukraine's GDP will flow toward defense and security expenditures, encompassing weapons procurement and military hardware acquisitions, while approximately $49.2 billion in external assistance will be essential for the upcoming fiscal year.

"It is expected to attract resources from the World Bank, the EU, the United Kingdom, the IMF and the G7 countries," it added.

Prime Minister Yulia Svyrydenko wrote on Telegram that the budget's key priorities are defense, security and social stability.

Ukraine will channel 2.8 trillion Ukrainian hryvnias ($66.4 billion) to armed forces in the coming year—comprising almost 60% of aggregate spending, Svyrydenko noted.

The legislation requires the president's signature before taking legal effect.

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