Ukraine's Budget Boost: $9.8 Billion More for Defence Amid Ongoing Conflict

Ukraine's parliament has approved an additional $9.8 billion in spending for the military and defense in 2025, amid ongoing conflict with Russia. The funding will support increased weapon production and purchases, with the government expecting to raise funds through domestic borrowing and higher tax revenues.

Ukraine's parliament has provisionally approved a significant $9.8 billion increase in military spending for the 2025 budget year, reflecting ongoing tensions with Russia. The adjustment raises defense expenditures to a new peak, driven by the exigency of arming the national forces more robustly.

The budget amendment will see an extra 412 billion hryvnias allocated to defense, intended largely for augmenting Ukraine's arsenal and military capabilities. The government plans to secure this funding through enhanced domestic borrowing and anticipated boosts in tax revenue.

Despite the strain of war, Ukraine's economy has shown resilience, aided by adaptable local businesses and substantial foreign financial support, while analysts highlight the parallel economic pressures between Ukraine and Russia as they continue their prolonged conflict.

(With inputs from agencies.)