Rada proposes to increase defense spending by almost UAH270B

Draft law No. 7644 on amendments to the 2022 State Budget in 2022, tabled in the Verkhovna Rada, expenditures will be increased by UAH 270.2 billion, of which UAH 269.5 billion will go to security and defense.

That’s according to the Verkhovna Rada press service, citing Danylo Hetmantsev, head of the Committee on Finance, Tax and Customs Policy, Ukrinform reports.

"Expenditures of the state budget alone - without local budgets and social funds - will make up 58.7% of this year’s projected GDP if we follow the latest NBU estimates: UAH 4,540 billion of GDP for 2022," he said.

The people’s deputy reported that, according to Draft Law No. 7644, the spending part is set to increase by UAH 270.2 billion, of which UAH 269.5 billion shall be allocated to security and defense.

"Once the draft law is passed, planned expenditures of the 2022 state budget will amount to UAH 2,663.5 billion. This is more than double the actual expenditures of the 2021 state budget (UAH 1,297 billion)," he noted.

These costs will be financed "at the expense of internal borrowings and an increase in the state budget deficit from UAH 823.5 billion to UAH 1,093.7 billion."

As reported, the parliament adopted the state budget for 2022 at second reading and as a whole on December 2, 2021. Throughout 2022, MPs repeatedly passed amendments to the country's main financial law.