Expenditures on defense and security have exceeded 730 billion since the beginning of the year, the Ministry of Finance of Ukraine reported and stated: “security and defense remain an absolute priority and the largest item of state budget expenditures.” This amount is 58.3% of the total amount of expenses of the general fund of the state budget.
What were these funds spent on? According to Ministry of Finance officials, these funds were used to purchase military/special equipment, weapons, ammunition, defense products, personal protective equipment (helmets, body armor, and other special equipment), fuel and lubricants, and food. Part of the funds was spent on financial support for military personnel, rank-and-file and senior officers, police officers, and their medical and other support. In total, 1,692,613.0 million hryvnias are allocated in the budget of Ukraine for financing the security and defense sector, which corresponds to 21.6 percent of GDP.
The world is rapidly arming itself, and this is causing an increase in defense spending in many countries. Growing instability in various regions, as well as technological competition between leading states, stimulate significant investments in the modernization of armies and the development of new types of weapons.
In general, the increase in American defense spending The Economist named one of the biggest global trends of the current year.
Defense spending is rising around the world for a variety of reasons, including rising geopolitical tensions, technological advances, and security threats. According to the Stockholm International Peace Research Institute (SIPRI), global military spending will reach a new record in 2023, surpassing $2 trillion. The increase reflects rising defense spending in many countries, including the US, China, Russia, India and Saudi Arabia.
The largest military spender in the world remains the United States, spending more than the next ten countries in the ranking combined. US defense spending is growing due to the modernization of the armed forces, the development of new technologies and the maintenance of international obligations. The budget of the Pentagon for 2024 is 886 billion US dollars.
China continues to increase its military spending as it seeks to strengthen its armed forces and ensure dominance in the region. China’s defense spending is growing at a rapid pace and includes the development of high-tech weapons systems and the expansion of its navy. In the current year, China has increased its military spending by about 7% – up to 231 billion US dollars. Chinese leader Xi Jinping has set 2027 as the deadline for his country’s armed forces to become a “world-class force”.
European Union countries are increasing their defense spending in response to threats from Russia and other security challenges. This includes increasing defense budgets in countries such as Germany and France.
Germany’s planned defense spending for the current year is about $73 billion, reflecting increased defense spending due to the need to modernize the armed forces and support for NATO. For the first time since 1992, Germany’s defense spending has reached two percent of gross domestic product (GDP).
France’s military budget for 2024 is about $47 billion, including investments in the development of nuclear deterrence and new technologies. Planned defense spending in the UK is approximately $48 billion and is directed mainly to the development of cyber security and the modernization of the navy.
Russia’s planned defense spending this year is estimated at approximately $112 billion, reflecting support for the aggressor country’s military operations and the development of new weapons systems. The Russian Federation allocates 6% of GDP to the article “national defense”.
Japan’s military budget for 2024 is about 58 billion US dollars. Spending focuses on cyber security, missile defense development and naval modernization.
Overall, the upward trend in military spending is likely to continue as countries seek to adapt to new security challenges and threats.
