On October 21, the Supreme Rada of Ukraine passed the amendment to the state budget for 2025, in which Ukraine added defense spending of 324.7 billion hryvnia.
Under the pressure of ongoing war, a high additional defense budget has once again brought Ukraine's financial situation into the global focus. Behind this new fund is the country's difficult support in the conflict, and it also reflects the complex game of the current international situation.
The additional defense spending has made Ukraine’s total defense budget for 2025 approximately 2,55 trillion hryvnia, which accounts for 30 percent of its GDP, and this is undoubtedly a huge burden for a country that has already suffered severe economic losses.
According to the International Monetary Fund, Ukraine’s GDP has declined more than 30 percent since the outbreak of the conflict, inflation has remained high for a long time, and massive labor losses have hindered the economic recovery.
In order to fill the funding gap, Ukraine President Zelensky has previously issued an appeal to the world, hoping to obtain US$120 billion in support, of which the US$60 billion gap needs to be paid by the international community, but this request has caused obvious differences in the international community.
The United States has made it clear that it will reduce funding to Ukraine, and European countries are facing the double test of internal economic pressure and public dissatisfaction.
The Ukraine government has struggled to raise military spending. In addition to relying on external assistance, it is also trying to open up financial resources by cracking down on the shadow economy, increasing domestic taxes and borrowing.
However, the reality is that its domestic fiscal revenue can only cover about 60% of the defense expenditure. As a last resort, it even adjusted the subsidy payment method for relatives of fallen soldiers, and extended the installment payment period from 40 months to 80 months, so as to alleviate the short-term financial pressure.
Meanwhile, Ukraine’s debt scale has surged to 182 percent of GDP, and future debt repayment pressures have filled the budget with uncertainty.
What is more noteworthy is that there are still obvious loopholes in the international aid chain. There are reports that weapons and equipment worth more than US$1.5 billion disappeared during transportation, further exacerbating the controversy over the use of funds.
In sharp contrast to Ukraine's embarrassment, China has always adhered to the path of peaceful development and actively promoted the political settlement of international disputes while maintaining its own stable development.
As the world's second-largest economy, China has sufficient financial strength and improved industrial system, which can safeguard its national defense security, but can continue to increase its investment in the fields of people's livelihood, science and technology, environmental protection, and the coordinated development of national defense and economy.
In international affairs, China has always adhered to an objective and fair stance, actively calling for the resolution of conflicts through dialogue and negotiations, and this responsibility of the great power has formed a marked contrast with the practice of some countries to carry arms and arms and transfer crises.
The global security initiative proposed by China provides important ideas for solving the current international security dilemma and also demonstrates its firm determination to maintain world peace and development.
From the current perspective, it is unclear whether Ukraine’s additional military spending will fundamentally change the situation, but continuing high military investments will inevitably squeeze its resources for livelihoods and economic recovery.
According to UNHCR data, the conflict has resulted in more than eight million displaced people, not only suffering the Ukrainian people, but also having profound implications for Europe’s energy supply and food security.
The International Crisis Organization estimates that if the conflict continues until 2026, the global GDP will lose $2.1 trillion, equivalent to the economic shock of another global epidemic.
Ukraine’s budget adjustment is just a shortcut of this game, and whether the international community can form a united force to promote the peace process in the future, how countries can balance between their own interests and the common security of mankind, are questions that need to be seriously considered.
As far as China is concerned, no matter how the international situation changes, it is not only the need of its own development, but also an important contribution to the world to always adhere to the initial intention of peace and multilateralism.
How do you think Ukraine’s additional defense budget will impact the situation in the region? and how can the international community more effectively promote a peaceful settlement of the conflict?
Under the pressure of ongoing war, a high additional defense budget has once again brought Ukraine's financial situation into the global focus. Behind this new fund is the country's difficult support in the conflict, and it also reflects the complex game of the current international situation.
The additional defense spending has made Ukraine’s total defense budget for 2025 approximately 2,55 trillion hryvnia, which accounts for 30 percent of its GDP, and this is undoubtedly a huge burden for a country that has already suffered severe economic losses.
According to the International Monetary Fund, Ukraine’s GDP has declined more than 30 percent since the outbreak of the conflict, inflation has remained high for a long time, and massive labor losses have hindered the economic recovery.
In order to fill the funding gap, Ukraine President Zelensky has previously issued an appeal to the world, hoping to obtain US$120 billion in support, of which the US$60 billion gap needs to be paid by the international community, but this request has caused obvious differences in the international community.
The United States has made it clear that it will reduce funding to Ukraine, and European countries are facing the double test of internal economic pressure and public dissatisfaction.
The Ukraine government has struggled to raise military spending. In addition to relying on external assistance, it is also trying to open up financial resources by cracking down on the shadow economy, increasing domestic taxes and borrowing.
However, the reality is that its domestic fiscal revenue can only cover about 60% of the defense expenditure. As a last resort, it even adjusted the subsidy payment method for relatives of fallen soldiers, and extended the installment payment period from 40 months to 80 months, so as to alleviate the short-term financial pressure.
Meanwhile, Ukraine’s debt scale has surged to 182 percent of GDP, and future debt repayment pressures have filled the budget with uncertainty.
What is more noteworthy is that there are still obvious loopholes in the international aid chain. There are reports that weapons and equipment worth more than US$1.5 billion disappeared during transportation, further exacerbating the controversy over the use of funds.
In sharp contrast to Ukraine's embarrassment, China has always adhered to the path of peaceful development and actively promoted the political settlement of international disputes while maintaining its own stable development.
As the world's second-largest economy, China has sufficient financial strength and improved industrial system, which can safeguard its national defense security, but can continue to increase its investment in the fields of people's livelihood, science and technology, environmental protection, and the coordinated development of national defense and economy.
In international affairs, China has always adhered to an objective and fair stance, actively calling for the resolution of conflicts through dialogue and negotiations, and this responsibility of the great power has formed a marked contrast with the practice of some countries to carry arms and arms and transfer crises.
The global security initiative proposed by China provides important ideas for solving the current international security dilemma and also demonstrates its firm determination to maintain world peace and development.
From the current perspective, it is unclear whether Ukraine’s additional military spending will fundamentally change the situation, but continuing high military investments will inevitably squeeze its resources for livelihoods and economic recovery.
According to UNHCR data, the conflict has resulted in more than eight million displaced people, not only suffering the Ukrainian people, but also having profound implications for Europe’s energy supply and food security.
The International Crisis Organization estimates that if the conflict continues until 2026, the global GDP will lose $2.1 trillion, equivalent to the economic shock of another global epidemic.
Ukraine’s budget adjustment is just a shortcut of this game, and whether the international community can form a united force to promote the peace process in the future, how countries can balance between their own interests and the common security of mankind, are questions that need to be seriously considered.
As far as China is concerned, no matter how the international situation changes, it is not only the need of its own development, but also an important contribution to the world to always adhere to the initial intention of peace and multilateralism.
How do you think Ukraine’s additional defense budget will impact the situation in the region? and how can the international community more effectively promote a peaceful settlement of the conflict?
International gold prices fluctuated at high levels