Ukrainian parliamentary committee recommends approving US$12.1 billion for defence budget

The Budget Committee of the Ukrainian parliament has recommended the approval of revised draft law No. 11417, which proposes increasing defence spending to UAH 500 billion (approximately US$12.1 billion).

Source: MP Yaroslav Zhelezniak

Details: Zhelezniak mentioned that the Budget Committee engaged in a challenging debate. The government requested the adoption of the draft law in its entirety, including proposed amendments.

Some MPs suggested making additional changes to the draft law, specifically proposing cuts to funding for the national 24/7 newscast and the Rada TV channel. Alternatively, they recommended approving the law in principle, allowing for further amendments.

The bill retains all the points revised by the committee, in particular:

• Approximately UAH 115.4 billion (around US$2.8 billion) in cuts to public debt service and repayment (the government's version included UAH 125.6 billion or about US$3.05 billion);
• An additional UAH 216 billion (about US$5.2 billion) is planned to be raised from the placement of domestic government bonds (the government's version planned UAH 160 billion or around US$3.9 billion);
• The treasury will receive an additional UAH 100 billion (approximately US$2.4 billion) from the over-execution of taxes and fees (previously planned at UAH 76 billion or about US$1.8 billion);
• About UAH 12.7 billion (US$308.3 million) in revenues from excise taxes on fuel and tobacco (previously UAH 13.7 billion or approximately US$332.4 million);
• About UAH 30 billion (US$728.8 million) in expected revenues from new tax changes (the government's version planned UAH 125 billion or around US$3.04 billion);
• A reduction or refusal of new expenditures in the general and special funds by UAH 25.5 billion (approximately US$619.4 million).

These funds are to be used to finance the shortfall in funds for Ukraine's defence forces.

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