33.6 billion hryvnias for the military: why the government is reallocating money instead of finding new sources

The Cabinet closed September payments to defenders at the expense of the internal defense reserve, but this decision highlights the main budget vulnerability – dependence on external assistance that still needs to be approved by the Council.

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Фото: Генштаб ЗСУ / Facebook

When a prime minister announces the allocation of billions for military payments, it sounds like good news. In reality, behind the figure of 33.6 billion hryvnias lies a less pleasant fact: the state has not found new money, but has redirected it within the existing reserve for the security and defense sector. This is a budgetary maneuvering technique that works as long as there is something to maneuver with.

Where the money will go and why now

25.9 billion hryvnias is the monthly financial provision for ZSU military personnel, meaning salaries that should arrive on time in September. Another 7.7 billion hryvnias is one-time assistance to families of the fallen and payments for injuries or disability. These amounts are not new expenditures, but planned state obligations that simply required confirmed financing right now to prevent delays.

Prime Minister Sergiy Koretsky explained the logic directly: funds were redistributed from the reserve to ensure timely payments. In other words, this is not about new priorities, but about technical closure of a cash gap within the already approved defense budget.

The reserve is not bottomless

Just a week ago, on September 1st, that same Koretsky spoke of 70 billion hryvnias in "non-binding expenditures" that the government plans to redirect to defense. Budget committee chair Roksolana Pidlasa warned that same day about approaching budget spending cuts. These two signals—a search for reserves within the system and a warning about their depletion—appeared simultaneously, and not by accident.

Simple arithmetic follows: the government can shift money from one line item to another as long as there is something to take from. But internal reserves are a finite resource, not a source that replenishes itself.

"This is the only way to balance the budget under current conditions," Koretsky emphasized, calling for acceleration of decisions to receive international financial assistance.

Real dependency—not on the Cabinet, but on the Council

President Volodymyr Zelensky has already said that Ukraine's receipt of $15 billion in international aid depends on the Verkhovna Rada. This is the real knot: military payments today are financed through internal redistribution, but the sustainability of this system in coming months will be determined not by government decisions, but by the speed of legislative decisions in parliament.

If the Rada delays decisions necessary for the tranche, there may be nothing left to redistribute next time—and then the question of timely military payments will cease to be technical.

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