President Volodymyr Zelensky recently signed a law to boost Ukraine’s state budget by $12 billion for defense and military purposes, in response to Russia’s aggression. This increase will be partially funded through domestic government bonds and reduced debt repayment expenses. Additionally, tax hikes on tobacco and fuel will contribute to the budget. The law was passed by the parliament and sets a record high expenditure for the country. The 2025 state budget plans to allocate 26.3% of GDP to defense spending. Furthermore, a tax increase bill for 2024 and 2025 was also approved to generate additional revenue. These financial decisions highlight Ukraine’s commitment to bolster its defense capabilities in the face of ongoing challenges.
Overall, this financial boost underscores Ukraine’s determination to strengthen its security and defense mechanisms in response to external threats. The increased budget allocation towards defense demonstrates the country’s prioritization of national security and preparedness. With these measures in place, Ukraine aims to enhance its military capabilities and safeguard its territorial integrity effectively.
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