skip to main content

Ukraine conflict: Parliament discusses record 2023 defence budget

Ukrainian Finance Minister Sergii Marchenko presented Kyiv's draft 2023 state budget to parliament on 21 September. The bill includes a record UAH857.9 billion (USD23.02 billion) allocated to defence, which is equivalent to a third of total government spending.

Around 40% of the budget, UAH355 billion, will be allocated to weapons and equipment procurement and modernisation as Ukraine seeks to replenish stockpiles lost during the continuing war with Russia. An additional UAH494 billion is available for personnel training and upkeep.

The Ukrainian defence budget is 30 times higher in nominal terms than it was when Russia annexed Crimea in 2014. Comparing its real dollar value now and in 2014 (USD3.65 billion), this is the equivalent of compound annual growth of around 23%.

Russia's full-scale invasion of Ukraine on 24 February prompted an unprecedented rise in military expenditure, which more than doubled to reach UAH383 billion in 2022. The new defence budget is 124% higher in nominal terms (98% in real terms) than the 2022 defence budget. Ukraine is now spending more than 15% of its GDP on defence, compared with an average of 2% during the decade before the Russian invasion.

Looking to read the full article?

Gain unlimited access to Janes news and more...