Photo: Facebook / Yaroslav Zheleznyak

First Deputy Chairman of the Verkhovna Rada Finance Committee, Yaroslav Zheleznyak, stated that due to increased defense expenditures, both the government and parliament will need to amend the state budget in the summer of 2025.

A week earlier, Zheleznyak had warned that, based on fiscal performance in the first few months of the year, the government would need to find at least UAH 200 billion to cover budget needs by year-end.

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However, after analyzing data for the first four months (including all of April and part of May), he revised his forecast, calling the previous estimate "too optimistic" and suggesting the fiscal situation is significantly worse.

According to Zheleznyak, the anticipated amendments to the budget could total around UAH 400 billion.

"The issue is that the initial UAH 200 billion shortfall was partially offset by higher-than-expected revenues from customs and tax collections, and partly by increased domestic borrowing. But when the gap widens to UAH 400 billion, it's clear that we’re facing a major shortfall. Frankly, I don’t understand how they plan to cover it," Zheleznyak said in a video on his YouTube channel.

The main reason for the rising deficit, he explained, is Ukraine’s need to procure weapons independently due to delays in military aid from international partners.

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Zheleznyak expects that amendments to the budget will be proposed after the IMF Executive Board meeting, scheduled for late June, and could be voted on in July or August.

Despite the mounting fiscal pressure, Zheleznyak emphasized that military salaries and defense-related payments will be made in full.

  • The Ministry of Finance stated that the 2025 state budget was designed to maintain stability even if full-scale hostilities continue throughout the year. Over UAH 2.2 trillion—equivalent to 26.3% of GDP—has been allocated for defense and security.
  • However, in early April, concerns were raised that current budget allocations might prove insufficient. The Ministry of Defense has reportedly begun spending funds originally earmarked for the final quarter of the year (October–December) to purchase ammunition and weapons in anticipation of a potential escalation before any ceasefire or "freeze" of the conflict.