Summary: Funding of security and defence sector of Ukraine for January-May 2024

Within the framework of the supervision of the implementation of the decision of the National Security and Defence Council of Ukraine dated 9 October 2023 “On Proposals to the Draft Law of Ukraine “On the State Budget of Ukraine for 2024” on the Items Related to Ensuring National Security and Defence of Ukraine”, enacted by the Decree of the President of Ukraine No. 682 dated 9 October 2023, the NSDC Office has analysed the state of funding of security and defence sector of Ukraine for January-May 2024.

The total resource for 2024 for the needs of the security and defence sector is envisaged at UAH 1,692.6 billion, which is 22.1% of gross domestic product.

Given the additional funding for the urgent needs of the security and defence sector in January-May this year, the total funding has increased to UAH 1,726.0 billion.

In particular, the general fund of the state budget funded the security and defence sector in the amount of UAH 809.9 billion, which is 100% of the plan. Thus, the funding of the security and defence sector under this source of funding was carried out in full in accordance with the monthly allocation schedule.

According to the security and defence sector authorities of Ukraine, in Q1 of this year, the expenditures of the special fund of the state budget under this source of financing amounted to UAH 159.8 billion, or 133.4% of the annual plan. The data on the amount of revenues from this source of funding will be updated based on the results of reports of military units for Q2 of this year.

Also, it should be noted that salaries and other social benefits to the personnel of the security and defence forces of Ukraine were paid in full.

At the same time, according to the security and defence sector authorities, there is an urgent need to cover the shortfall in some areas by the end of 2024.

In view of the above, the NSDC Office informed the Cabinet of Ministers of Ukraine of the need to develop proposals on the possibility of amending the Law of Ukraine “On the State Budget of Ukraine for 2024” to increase expenditures for the security and defence sector of Ukraine.

According to the security and defence sector entities of Ukraine, the level of funding in January-May made it possible to ensure funding for the key priority areas of their activities under martial law.