26% of Ukraine’s GDP to Fund Drones, Missiles and Armored Vehicles: Ukraine’s 2025 Defense Plan

(Kyiv) – The Ukrainian government has committed to strengthening its defense capabilities in 2025, with Prime Minister Denys Shmyhal announcing that over 26% of the country’s GDP will be allocated to defense spending. This amounts to UAH 2.2 trillion, and the priority will be to boost the production capacity of Ukraine’s defense industry, particularly for drones, missiles, shells, artillery, and armored vehicles.

During a government meeting, Shmyhal emphasized that the defense sector would be the largest recipient of the national budget, surpassing even other sectors of the economy. In 2024, more than half of the state budget was allocated to defense, and the trend is set to continue this year, with a significant portion directed toward strengthening Ukraine’s military capabilities. The government’s goal is to significantly increase the production of key military assets, including drones, artillery, and armored vehicles, which are essential for the ongoing conflict with Russia.

The Ukrainian government also expressed high hopes for the “Danish model,” which involves partnering with international allies to place orders with Ukrainian defense manufacturers. This model is expected to not only support Ukraine’s defense needs but also enhance the country’s defense industry by increasing its production capacity and international reach.

According to the law “On the State Budget of Ukraine for 2025,” Ukraine’s projected budget revenues are over UAH 2.327 trillion, while expenditures are estimated at UAH 3.929 trillion. The defense sector’s budget allocation of UAH 2.2 trillion represents a significant commitment to fortifying the country’s military forces during a time of heightened conflict.