In 2024, the Ministry of Defence allocated UAH 862.6 billion for payments to the military, which is more than 70% of the ministry's budget.
According to the Ministry of Defence, this block includes military salaries, additional payments, food, clothing, and rewards for destroyed equipment.
Deputy Minister of Defence of Ukraine Yuriy Dzhyhyr explained that the budget of the Ministry of Defence for 2024 can be divided into three large packages. This is the approach taken by NATO countries when categorising their defence spending.
The largest package of expenditures is financial support and combat payments, which amount to UAH 862.6 billion. Dzhyhyr noted that this amount may change, as it is necessary to take into account the dynamic situation at the front and the growing needs of the Armed Forces. If the intensity of hostilities increases and the number of troops grows, it will be necessary to attract additional funding, which will entail changes to the budget and appropriate government decisions.
The second package is the purchase of weapons and military equipment. It accounts for more than 20% of Ukraine's defence budget. UAH 265.4 billion was allocated to meet the military's needs for high-quality equipment and weapons. However, the amount may vary depending on the combat situation.
The third package is operational costs. It includes the purchase of fuel, training of troops, utility bills, and routine maintenance.
"This is all the money provided for in the state budget. However, this year we have additional funds, including those allocated by the Government from the reserve fund. For example, in January, the Government allocated UAH 657 million to the Ministry of Defence to be sent to military units. These funds are allocated for the purchase of equipment and weapons, optical and thermal imaging devices, communications equipment, ammunition production, repair and maintenance of equipment, etc.", said Yuriy Dzhyhyr.
In addition, there is another innovation of the 2024 Budget. It provides for the transfer of personal income tax’s share (PIT) of the military from local communities to the state budget with the subsequent automatic transfer of the "military PIT" to military units in proportion to the tax paid by them. In 2024, we expect to receive UAH 7.9 billion from this source.
Local subventions for defence needs are another source of funds.
"Regional centres, territorial communities, districts and cities independently decided to allocate funds directly to those military units and in the areas they considered to be of the highest priority. Last year, almost UAH 16 billion was transferred. The unused balance of these subventions in the amount of UAH 4.8 billion was transferred as an additional resource for military units for 2024," said Yuriy Dzhyhyr.