In the month of May this year, when the war between India and Pakistan ended with the ceasefire, many dignitaries of the country had asked that ‘why should the war be continued’. Those people should see nothing but the situation in Russia and Ukraine. The war between the two countries has been going on for four years amidst the growing pile of dead bodies and debris. Ukraine is a direct example of how war can tear a country apart. The economy of Zelensky’s country has been badly shaken but still the compulsion is such that this country has had to make a record increase in its defense budget.
The Ukrainian parliament on Tuesday approved amendments to the country’s annual budget, increasing the defense budget by another 325 billion hryvnia (about $7.7 billion). Ukraine is spending about 76% of its total budget only on war and defense. Ukraine’s total budget (2025) is about 3.9 trillion hryvnia (about US$93 billion), but defense spending alone is 2.96 trillion hryvnia (about $70.8 billion). This amount represents the largest share of Ukraine’s total budget and shows how the war has changed the country’s priorities.
Ukraine’s Finance Minister Serhiy Marchenko said, “The situation is constantly changing. Increasing spending to effectively counter aggression is a compulsion, it is not our choice but a necessity.” He said that with the support the government is getting from its international partners, it will be possible to arrange additional expenses for the country’s security forces.
Defense budget had to be increased for the second time
This is the second time this year that Ukraine has had to increase its defense budget. Earlier in July, Parliament had approved an increase of about 412 billion hryvnia (about $9.8 billion). At that time the total defense budget was fixed at about 2.2 trillion hryvnia, but now the situation has changed so much that the expenditure has reached close to 3 trillion hryvnia.
The war with Russia is now going on on a 1,200 kilometer long frontline. Due to continuous bombings, drone attacks and ground conflict, the need for ammunition, weapons and soldiers is continuously increasing. Ukraine now faces a larger and better-armed Russian army, and billions of dollars are being pumped into it every month.
Ukraine’s war with Russian money
Interestingly, a part of this additional expenditure will be met by loans given by the G-7 countries and this money will come from the interest on those Russian assets which have been frozen by the Western countries by imposing sanctions against Russia.
Ukrainian Prime Minister Yulia Sviridenko said, “The most important thing is that the interest from Russia’s frozen assets will now be spent on defense. It is completely justified that Russian assets be used to strengthen the Ukrainian military.”
According to government data, Ukraine has received financial assistance worth $28 billion from G-7 countries so far this year. Overall, Ukraine has received about $152 billion in foreign aid since the Russian attack in February 2022.
More than half the income spent only on war
According to the latest data from Ukraine’s Finance Ministry, in the first nine months of this year the government spent 63% of its total earnings on army and defense alone. That is, out of every 100 dollars, 63 dollars are being spent only on arms, ammunition and war operations.
The country’s economy is so war-torn that the expenses for social, health and humanitarian programs are now being met with the financial help of Western countries. Almost the entire domestic tax revenue has been diverted to the war.
Russia’s attack has destroyed Ukrainian cities, bridges and power plants. Millions of people have left the country, thousands have died and millions are still displaced. Traces of war are everywhere, from the capital Kiev to Kharkiv and Donbass.
Answer will be received from Pakistan also
Ukraine’s new defense budget gives another message not only to Russia but also to the world that future generations will not forgive countries that compromise their security under the pretext of war or ceasefire.
Recently, Pakistan has hinted at discussing “ceasefire” with India, but Ukraine’s experience shows how costly it can prove to be to trust the enemy’s tactics in the name of peace. Ukraine signed peace agreements with Russia several times after 2014, but each time the result was a new attack.
Today, the same Ukraine is forced to spend more than half of its earnings on war. This situation shows how much negligence on the security front can cost a country.
‘The war is going on not only on the front, but also in the economy’
“Now our fight is not just on the front, but also in the economy. Russia is fighting with weapons, we are fighting with the budget and debt,” a senior Ukrainian parliamentarian said on condition of anonymity.
This statement perfectly describes the situation in Ukraine — where every weapon costs billions of dollars, and every ammunition is being purchased with foreign aid.
Ukraine has made it clear that no matter how many years the war continues, the country will not bow down. But it is also true that this war has shaken the financial and social backbone of Ukraine.
