The defense budget of the Ministry of Defense of Ukraine for 2024 will amount to over a trillion hryvnias: what will it be spent on?

Ukraine has increased the funds allocated for the purchase of weapons and military equipment almost tenfold compared to the budget planned for 2021. However, in reality, it is not that much, considering today's realities. What do they plan to spend these funds on?

Ukraine will spend $6.5 billion on “weapons and equipment” in 2024

The defense budget of the Ministry of Defense of Ukraine for 2024 will amount to UAH 1.164 trillion - the Verkhovna Rada of Ukraine has approved the state budget for next year, Defense Express reports. At the same time, the Ministry of National Defense presented what these funds will be spent on.

862 billion will go to personnel — salaries for soldiers of the Armed Forces of Ukraine and the State Special Transport Service, as well as funds for food, purchase of uniforms, ammunition, and personal protective equipment.

The second-largest item of expenditure is the amount of 265.4 billion hryvnias allocated to the purchase of weapons. It's about $6.5-7 billion, and for Ukraine it's a really big amount. For example, the Ministry of National Defense budget for 2022 amounted to UAH 286.6 billion, of which UAH 28 billion was allocated to “development, supply, modernization, and repair of armament, military equipment and resources”, and the exchange rate at that time is approximately one billion dollars.

What will the Ministry of Defense of Ukraine buy next year?

In fact, the almost 10-fold increase in the budget for weapons and equipment is due to the fact that this spending item includes “the purchase of weapons, equipment, UAVs and ammunition, as well as the reconstruction of equipment damaged during hostilities”. This means that we are talking about such large-scale projects as, for example, tanks, self-propelled guns or BMPs with armored personnel carriers, as well as cartridges for small arms.

Separately, it is worth noting the fact that the amount of UAH 265.4 billion includes "reconstruction of equipment damaged during hostilities". Additionally, foreign partners will help with this. In particular, Germany plans to spend more than EUR 5 billion on defense assistance to Ukraine next year.

According to experts, today's $6.5 billion is not astronomical money, considering how weapons prices skyrocketed after February 2022, when tanks cost $20-30 million, and the price of one artillery ammunition could reach up to $8,000.

It should be recognized that the level of defense assistance from allies will also remain critical for Ukraine's defense capabilities, especially in the context of supplies of ammunition, anti-aircraft missiles, and especially from the US.