Cabinet tasked to envisage enough budget funds for Ukraine's defense industry in 2021

The National Security and Defense Council (NSDC) of Ukraine has tasked the Cabinet of Ministers to allocate expenditures in the draft national budget for 2021 that account for up to 0.5% of GDP for state programs to reform the defense industry and develop defense technologies.

That is according to an NSDC resolution, posted on the Ukrainian President's website on November 5.

Read alsoZelensky vows not to reduce Ukrainian army budget in 2021"The draft law of Ukraine on the national budget for 2021 should foresee 0.5% of GDP in spending for the central executive agency that develops and implements the state military and industrial policy on programs to reform the defense industry and develop defense technologies," the document reads.

The programs stipulate an increase in the existing capacities for the production of defense products, training of scientific personnel and at least UAH 125 million (US$4.4 million) in financial support for the development of scientific infrastructure, as well as UAH 300 million (US$10.5 million) for implementation of research projects and development of new technologies in the defense industry.

The government was also instructed to accelerate the formation of Ukraine's Ministry for Strategic Industries and ensure its effective work.

The 2021 national budget: Background

• The draft national budget for 2021, which was approved by the Cabinet of Ministers on September 14, 2020, provides for revenue at UAH 1.07 trillion (US$38 billion), while spending at UAH 1.35 trillion (US$47.4 billion). The deficit is expected to be 6% of GDP next year. The budget deficit is capped at UAH 270 billion (US$9.5 billion).
• The national budget draft also envisages UAH 104 billion (US$3.6 billion) in benefits and subsidies. In total, social expenditures stand at UAH 323 billion (US$11.3 billion).
• Deputy Chairman of the Holos (Voice) faction, First Deputy Chairman of the Verkhovna Rada's Committee on Finance, Tax and Customs Policy Yaroslav Zheleznyak earlier said that lawmakers submitted more than 2,400 amendments to the draft law on the 2021 national budget.
• The bill on Ukraine's national budget for 2021 passed its first reading in the Verkhovna Rada on November 5.