Ukraine’s parliamentary committee add tweaks to draft of 2025 state budget

Source: Roksolana Pidlas, Budget Committee Chair

The Ukrainian Parliament’s budget committee has approved the draft 2025 state budget for a second reading, but added some amendments. The re-write will see such things like:

1. Kyiv will receive a $2 billion (approximately 90 billion hryvnias) loan from the United Kingdom to finance military expenses, including weapons procurement – these funds will be allocated to a special foreign borrowing fund for the Ministry of Defense.
2. Local Budget Funding changes assume that
   • Communities retain 4% of the personal income tax (excluding military tax), securing 64% of local budget revenues to cover utility and energy costs.
   • A subsidy of 12.2 billion hryvnias  has been removed meaning  regional budgets have to figure out how to offset tariff differences
3.  Frontline communities will be exempt from transferring reverse subsidies.
4. “Ukrzaliznytsia” will get  128 million hryvnias to co-finance a European project for railway infrastructure development.
   5. The National Academy of Sciences will receive an additional 277.1 million hryvnias, with a share of it earmarked for military research projects.
   6. Political parties will no longer be allowed to purchase domestic government military bonds.
   7. Hospital Requirements. The government will drop the earlier introduced obligation for hospitals to keep funds exclusively in Treasury accounts.

   The remaining provisions of the draft budget remain unchanged and align with the government’s original proposals. The document now awaits a vote in the parliamentary session for the second reading and final approval.