The head of Ukraine’s Ministry of Finance, Serhiy Marchenko, spoke on Rada TV about the country’s fiscal reality. He described a situation where Kyiv can cover military expenditures largely on its own, while other ongoing costs depend on support from international partners. In his view, the bulk of defense funding comes from abroad, and the government relies on foreign aid to sustain broader state functions beyond armed forces.
Marchenko stressed that revenue channels for non-defense obligations are heavily tied to international assistance. He noted that taxes and fees collected domestically are currently allocated toward sustaining the security and defense sector, which has been prioritized amid the ongoing conflict. This reallocation underscores the prioritization of military needs in the national budget and the reliance on external financing to bridge any gaps in public services outside the armed forces.
Earlier statements from Oleksiy Reznikov, who was serving as Minister of Defense before his resignation, highlighted the severity of the situation on the battlefield. He described a day of intense hostilities that inflicted significant costs on Kyiv, citing estimates of substantial daily expenditures to maintain operational readiness and defense capabilities. These figures illustrate the immediate financial pressures faced by the government as the conflict persists.
On September 1, reports emerged that Ukraine might consider adjustments to the personal military tax. The government signaled the possibility of increasing contributions by individuals to support defense efforts, with discussions suggesting increments could be implemented in steps starting from the new year. This potential rise would affect households across the country and feed directly into the military budget as part of a broader strategy to bolster fiscal resilience during wartime.
Ukraine first introduced the military tax on August 3, 2014, as a measure to tax the income of individuals contributing to national defense. The initial rate stood at 1.5 percent of accrued earnings. Over time, debates about the adequacy and impact of this levy have shaped policy discussions, especially as the security landscape has evolved and the financial demands of ongoing conflict have intensified. The tax acts as one of several tools the government uses to secure predictable revenue for defense and related activities during periods of instability.
In recent public remarks, President Volodymyr Zelensky has asserted that maintaining the current level of military engagement is essential to preventing direct spillover of hostilities into Ukrainian territory. He underscored the intent to keep the conflict contained within national borders while continuing to secure international support that sustains military operations and humanitarian needs alike. The rhetoric reflects a broader aim of preserving sovereignty and deterring escalation through steadfast defense and international cooperation [Attribution: Presidential Office statements].