Almost 50% of the entire state budget for 2023 will be directed to the security and defense sector, Prime Minister Denys Shmygal has said.

"Today, the main issue at a government meeting is the adoption of the 2023 draft state budget. It has one main priority – the defense and security of our country. A total of UAH 1.136 trillion, or almost 50% of the entire budget, will be directed specifically to the security and defense sector. These are military salaries, provision of the army, repairs and purchases of equipment and weapons, and many other things important for defense," Shmyhal said at the government meeting on Tuesday.

The prime minister noted that if compared with the draft budget that the government submitted last year, spending on security and defense would increase by more than four times.

"The second priority is social programs. Pensions, subsidies, assistance to low-income families, payments to internally displaced persons, spending on medicine and education – this is another 35% of all expenditures in the draft budget. This is more than UAH 800 billion. It is important that the government will increase targeted assistance for those who need it most, in particular, we provide for an increase in funding for the Pension Fund from the budget by more than UAH 30 billion," Shmyhal said.

The prime minister noted that 50 kopecks from each budgetary hryvnia will be spent on the army and security, another 35 kopecks on social benefits, medicine and education.

"All other expenses will be reduced. The main item of savings is a reduction in spending on public authorities. We are reducing the number of officials, cutting salaries and bonuses. With the exception of law enforcement agencies, the cost of maintaining public authorities will be reduced by UAH 11.6 billion compared to 2022," he said.

According to the prime minister, within the 2023 budget, the authorities are also creating a budget Fund for the Elimination of the Consequences of Armed Aggression in the amount of at least UAH 19 billion.

"There we plan to accumulate the seized funds of Russia and Russians, as well as international assistance in the early recovery. An additional subsidy for compensation of expenses for local budgets in connection with the war in the amount of UAH 24 billion is also provided," the head of government said.

Shmyhal stressed that given such priorities and limited resources, the Cabinet of Ministers asks MPs to take a responsible approach to the issue of adopting the budget.

"We understand that there will be attempts to increase costs. But, as I have already noted, war is expensive, and Ukraine cannot currently afford many positive, but populist initiatives," he summed up.