Budgets for the Ministry of Defense will Increase Year-on-Year by 10 percent, Government Defense Procurements by 20 Percent for 2022

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Ukraine’s defense and security budget for 2022 will increase to reach almost 6 percent of GDP
Ukraine’s defense and security budget for 2022 will increase to reach almost 6 percent of GDP

The overall defense and security budget for 2022 will grow to reach close to 6 percent of GDP

Ukraine’s national legislature, the Verkhovna Rada, has approved the national budget for 2022, with 268 yes votes.

Budgeted revenues and expenditures have been set at UAH 1,322 billion and UAH 1,497 billion respectively. Total budget for the defense and security sector has been approved at UAH 286.6 billion or an equivalent of almost 6 percent of the gross domestic product.

Read more: Ukraine’s Armed Forces Celebrate their 30th Birthday with New Additions to their Armory
The Ministry of Defense had a budget of UAH 116.22 billion in 2021

Out of the UAH 133.488 billion budgeted for the Ministry of Defense for 2022 (up UAH 17.268 billion from 2021), expenditures will go to the following:

  • UAH 99.887 billion (up UAH 11.747 billion from 2021) for the Armed Forces personnel and operational costs;
  • UAH 28.438 billion (up UAH 5.738 billion from 2021) for the development, acquisition, modernization, and overhaul repair of weaponry, military hardware, equipment, and assets;
  • UAH 2.142 billion (down UAH 0.358 billion from 2021) for the disposal of ammunition, military equipment and other defense materiel; as well as for improving survivability and fire safety of the Armed Forces arsenals, bases and warehouses;
  • UAH 464.090 million (up UAH 19.41 million from 2021) for administration and military management in the defense sector;
  • UAH 1.23 billion (up UAH 0.04 billion from 2021) for military family housing.
    Defense budget appropriations for the development, acquisition, modernization, and overhaul repair of weaponry, military hardware, equipment, and assets have been set at UAH 28.438 billion, up UAH 5.738 billion from 2021

Budget appropriations for the Administration of the State Service for Special Transport will amount to UAH 1.326 billion.

Appropriations budgeted for 2022 for law enforcement and intelligence services

Budgets for the Defense Ministry’s Intelligence Service, Security Service of Ukraine (SBU), and the Foreign Intelligence Service of Ukraine have been set at UAH 4.48 billion, UAH 15.153 billion, and UAH 4.461 billion respectively.

Ukraine’s Ministry of Internal Affairs will have UAH 99.234 billion budgeted for 2022

Out of the UAH 99.234 billion budgeted for the Ministry of Internal Affairs for 2022, the following will go towards:

  • UAH 13.460 billion for the Office of the Ministry of Internal Affairs;
  • UAH 14.864 billion for the State Border Guard Service of Ukraine;
  • UAH 14.098 billion for the National Guards of Ukraine;
  • UAH 16.867 billion for the State Service for Emergencies;
  • UAH 34.146 billion for the National Police of Ukraine.

The National Anti-Corruption Bureau of Ukraine (NABU) will have budget appropriations of UAH 1.328 billion, National Agency for Corruption Prevention UAH 1.317 billion, State Bureau of Investigations UAH 2.68 billion, and State Guard Directorate UAH 1.826 billion.

Other defense and security institutions will have budgets amounting to:

  • UAH 388.132 million for the National Security and Defense Council of Ukraine;
  • UAH 2.769 billion for the Ministry for Strategic Industries of Ukraine;
  • UAH 1.351 billion for the Ministry for Digital Transformation of Ukraine;
  • UAH 1.504 billion for the Ministry for Re-integration of Currently Occupied Territories;
  • UAH 1.219 billion for the State Space Agency of Ukraine.

The budget foresees an exchange rate of 27 hryvnias to the U.S. dollar.

Read more: Ukraine to Boost its Defense and Security Spending to Record High 5.95 Percent of GDP for 2022