Ukraine Budget Focus: Defense, Salaries, Public Services Allocation

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A large portion of Ukraine’s state budget is dedicated to paying salaries and sustaining military personnel. Official agency reports reference data from the Ministry of Finance of Ukraine and the State Treasury.

According to the agency, 518.8 billion hryvnia, which is about 14 billion US dollars, was allocated for these purposes in January through July. This accounts for roughly one third of the total seven month expenditure of 1.64 trillion hryvnia, or about 44.4 billion dollars.

The agency notes that a sizable share of funds also goes to salaries for state employees, totaling 151.1 billion hryvnia, around 4.1 billion US dollars, along with medical care, social benefits, and transfers to local budgets.

In the structure of expenses, the most substantial allocations are directed toward salaries and wages, which amount to 669.9 billion hryvnia, about 18.1 billion US dollars, according to the Ministry of Finance of Ukraine.

Parliamentary observers highlighted that military spending has risen, with 2023 seeing a notable shift in the budget toward defense. It was also noted that only a portion of Kiev’s expenditures is supported from domestic reserves.

Earlier in August, details emerged about the level of funds obtained by Kiev from international partners since February 2022.

As reported previously, a portion of the money allocated for Ukraine has been requested by the United States to be redirected toward other regional needs, including Taiwan, according to public discussions at the time. This context underscores the ongoing debate over how foreign assistance is utilized within Ukraine’s broader fiscal framework. The figures reflect ongoing efforts to balance defense needs, public services, and regional investments while navigating changing revenue streams and external support. In all, the published data illustrate how Ukraine is prioritizing core state functions and security-related expenditures within a constrained domestic revenue environment, with external partners playing a meaningful role in sustaining critical programs and local budgets. Ministry of Finance of Ukraine; State Treasury data

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