Ukraine Faces $5B Shortfall in Military Budget Amid Growing War Costs

Ukraine is facing a shortfall of around 200 billion hryvnias (approximately $5 billion) in funding for its Armed Forces, according to Yaroslav Zheleznyak, a member of the Verkhovna Rada.

The budget gap, he said on his Telegram channel, is already apparent by mid-May and reflects an ongoing pattern from previous years.

"This year (as in 2024 and 2023), the budget does not have enough money for the army," Zheleznyak wrote. "As of mid-May, it is already obvious that the planned expenditures on the army are not enough and the need will be greater. Somewhere now by 200 billion hryvnias."

Zheleznyak added that the government is preparing to submit an amendment to the 2025 budget to address the growing funding gap.

In November, the Verkhovna Rada passed the national budget for 2025, allocating a record 3.94 trillion hryvnias ($95.5 billion) in total spending. Of that, 2.22 trillion hryvnias ($53.8 billion) was designated for defense. Revenues were projected at 2.3 trillion hryvnias ($55.8 billion), supplemented by $38.4 billion in expected foreign financing.

Despite the defense-heavy budget, officials and lawmakers continue to warn that the military remains underfunded. In February, MP Nina Yuzhanina urged a redirection of all non-military government spending to bolster the Armed Forces, calling the situation “critical.” The government has said it cannot raise salaries for teachers and other civil workers because all available budget revenue is going to the military sector.

Ukraine’s fiscal pressure is compounded by a record budget deficit of $43.9 billion in 2024. The country continues to depend heavily on financial support from its Western partners, but delays in the delivery of aid packages have strained military operations and planning.

Gavin Gray, head of the International Monetary Fund (IMF) mission to Ukraine, recently cautioned that foreign aid would gradually decline, emphasizing that Kyiv must find ways to develop domestic funding sources. President Volodymyr Zelensky has also expressed concern, saying Ukraine lacks the resources to manufacture its own weapons, while international assistance is slow to arrive.