Overview of the Budget 2025

This is the Ukraine’s fourth wartime budget and the first crafted within a medium-term budgeting framework, aligned with the 2025–2027 Budget Declaration. Parliament efficiently approved the draft budget, passing it in the first reading on October 31 and adopting it as law in the second reading on November 19.

State budget revenues for 2025 are estimated at UAH 2.3 trillion, while expenditures are projected to reach approximately UAH 3.9 trillion. As in previous years, nearly half of the budget is dedicated to defense and efforts to counter the aggressor. This allocation has been sustained by significant military, economic, and financial aid packages from European countries and the United States. Grants and loans have covered almost 100% of non-defense expenditures, with in-kind assistance playing a critical role in boosting defense spending.

The reliance on external support remains the most pressing fiscal challenge. Domestic revenues fall short of covering expenses, leaving a projected budget deficit of UAH 1.6 trillion in 2025—equivalent to 18.9% of GDP, down from 20.4% in 2023.

Since the full-scale invasion began, Ukraine has received over $100 billion in external budget support, with 90% provided by the EU, the US, the IMF, Japan, and Canada. For 2025, an additional $38.4 billion in external financing will be required.

Social spending is set at UAH 431.5 billion, marking a UAH 33 billion decrease compared to 2024. Of this amount, UAH 237 billion is allocated for pensions—a 12.8% reduction from the previous year.

The second-largest expenditure category, “Social Protection for Citizens Facing Difficult Life Circumstances,” is allocated UAH 81.8 billion, representing an 8% decrease from 2024. Similarly, spending on “Housing Subsidies and Benefits for Utility Payments” is projected to decline by 8%, totalling UAH 42 billion.

For a deeper dive into the budget details, consult the full report.

This research is one of the activities under the Good Governance Fund Project “Economic Hub: Strengthening Macroeconomic Stability Through Robust Public Financial Management,” funded by UK International Development and the UK Government. The project is implemented by Abt Global and the Centre for Economic Strategy.