Ministry of Finance: Verkhovna Rada supports bill on increasing non-military budget expenditure in second reading
Ministry of Finance of Ukraine,
posted
20 August 2025
16:06
The Verkhovna Rada of Ukraine passed bill No. 13439-3 in its second reading, with 229 MPs voting in favour. The document provides for the reallocation of state budget funds, prioritising non-military areas such as healthcare, education, support for veterans, and internally displaced persons (IDPs).
Key Areas of Additional Funding:
- UAH 25.8 billion to replenish the state budget reserve fund to cover unforeseen military and humanitarian needs.
- UAH 4.3 billion for digital development, including:
- UAH 1.4 billion for the procurement of specialised equipment, drones, and testing equipment for combat conditions;
- UAH 2.8 billion for grant support to manufacturers in the defence technology sector.
- UAH 4.6 billion for school meals for pupils in grades 1–4 across all regions and grades 5–11 in frontline areas.
- UAH 3.2 billion for the purchase of medicines for cancer patients, those with rare (orphan) diseases, hepatitis, haemophilia, and other conditions, as well as funding for the treatment of children with Duchenne muscular dystrophy.
- UAH 1.5 billion as a subvention to local budgets for the development of a network of military lyceums.
- UAH 1.2 billion to support war veterans and their families (financial aid and insurance policy compensations).
Special Focus on IDP Support:
- UAH 1 billion allocated for the construction or reconstruction of housing for internally displaced persons;
- Local authorities will also be permitted to use unallocated budget funds to purchase housing or provide preferential loans for IDPs.
Funding Sources:
- Reduction of other non-military expenditure by UAH 35.4 billion, including UAH 33.6 billion from decreased public debt servicing costs;
- Reallocation of part of the bank profit tax, with UAH 8 billion redirected from Kyiv’s city budget to the general fund of the state budget.
The law will take effect upon the signature of the President of Ukraine, Volodymyr Zelenskyy.