Financing of Ukraine’s security and defence forces: trends, structure, challenges

Анотація

The purpose of this article is to analyse trends and structures in the financing of Ukraine’s security and defence forces, identify key challenges in ensuring the country’s defence capability, and formulate recommendations for optimizing budgetary policy in this area, taking into account international experience and the current conditions of war. The study examines the current state of Ukraine’s security and defence forces in 2025, which includes military formations, specialized structures, and civil services that jointly ensure the defence of the state and the security of the population. The legislative framework for financing Ukraine’s security and defence sector is analysed. Particular attention is paid to trends in the sector’s financing: the growth of military spending after 2014, its sharp increase in connection with the full-scale war since 2022, the record share of defence spending in the state budget, dependence on international aid, and diversification of revenue sources. Key challenges have been identified: limited flexibility of financial mechanisms, imbalance between military and socio-economic needs, risks of “donor fatigue,” uneven development of the defence-industrial complex, problems of transparency and strategic planning. The necessity of searching for optimal mechanisms for financial stability in Ukraine’s security and defence sector is substantiated. Ways to improve the financing system are proposed: introduction of strategic planning and medium-term budgeting, activation of public-private partnerships, and development of the national military-industrial complex.

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