Ukraine's 2025 budget faces serious challenges, with expenditures at 4 trillion UAH and revenues at only 2.3 trillion, creating a deficit of 1.6 trillion UAH. This makes up nearly 20% of the country’s GDP, directed primarily toward war needs.
The budget structure has drastically changed from peacetime: over half of the funds now go to defense, seven times more than in 2022. By the end of the year, an extra 300 billion UAH will be needed for military expenses.
The government covers this gap by raising taxes, taking domestic loans, and relying on international financial support. International partners mainly fund education, healthcare, and social payments, while domestic resources go to national defense.
Despite the tight budget, social programs continue. Each first-grade student receives a "school package" of 5,000 UAH, and winter support payments of 1,000 UAH went to 14.5 million Ukrainians. The lack of income-based targeting in such measures raises concerns about their necessity during war and budget deficit.
Financial stability depends on ongoing international partner support and responsible spending. As war goes on, Ukraine must balance army support with helping its people, complicating fiscal decisions.
The author highlights the importance of financial literacy, comparing state and family budgets: both require structure and spending control.
