Counteroffensive budget. Rada approves extra $14.5 billion for defense — where will it come from?

This week, the Verkhovna Rada adopted amendments to the state budget as a whole — defense spending is increased by more than half a trillion hryvnias. The law will come into force after being signed by the President.

Last week, Prime Minister Denys Shmyhal had already announced a 20% increase in public spending. The Cabinet of Ministers desperately needs additional funds for defense, primarily for the military. There is no doubt that this legal act will go through all the bureaucratic procedures at full throttle.

Given that Ukraine's GDP has shrunk by 30%, it will be difficult, but not impossible, to find additional UAH 537 billion ($14.5 billion) for the army. LIGA.net studied how the government is going to solve this problem, and what will be the consequences for the economy and taxpayers.