Ukraine's parliament has officially approved the 2025 national budget, spending on weapons at a record level. (Source: Getty Images)

Accordingly, Kiev plans to spend a record 2.2 trillion hryvnia (53.7 billion USD), equivalent to about 26% of GDP on defense and security next year, on a total budget expenditure also estimated at a record 3,940 billion hryvnia (more than 95 billion USD).

The Ukrainian Finance Ministry also revealed that the government will transfer 739 billion hryvnia to produce weapons, an increase of 34.1 billion hryvnia compared to 2024.

“Record amounts will also be directed to the production and purchase of weapons. More money will be spent on modernizing the arms industry and also on purchasing drones,” Shmyhal said.

President Volodymyr Zelenskyy, who presented Ukraine's recovery plan, said Kiev is planning to produce at least 30,000 long-range drones and 3,000 unmanned cruise missiles and rockets next year.

Other priorities in the 2025 budget will be to support people as they grapple with economic and security challenges during wartime, Finance Minister Serhiy Marchenko said. Social assistance programs will receive 421 billion hryvnia, while education and health care will receive 199 billion hryvnia and 217 billion hryvnia, respectively.

Meanwhile, considering the budget revenue, it is set at 2.3 trillion hryvnia. And according to Prime Minister Denys Shmyhal, “all taxes of citizens and businesses in 2025 will be directed to the defense and security of the country”.

In addition, Kiev is also waiting for foreign grants and international aid of about $38.4 billion to cover the budget deficit.

The Ukrainian government will also implement the first wartime tax hike on citizens and businesses to boost domestic revenues by 2025.

The International Monetary Fund (IMF), a major lender, said its staff and the Ukrainian government have reached an agreement to provide Ukraine with a loan of about $1.1 billion.

Kiev also plans to implement measures to support economic recovery but expects growth to slow to 2.7% in 2025 from a target of 4% this year due to military conflict, a projected energy deficit and personnel shortages.

As a result, Ukraine's arms manufacturing industry has become one of the main drivers of economic growth this year, and the government plans to increase production further by 2025.

Previously, on November 19, President Volodymyr Zelensky submitted to the Ukrainian Parliament a 10-point “Stand Firm Plan,” including unity, front building, weapons, money, etc. According to MP Yaroslav Zelezniak, some of the contents of the “Stand Firm Plan” include that Ukraine will not hold presidential elections and will not lower the age of military service. In addition, Ukraine will also establish a Ministry of Unification…

Meanwhile, in another development, Denmark announced that it would donate 1 billion Kroner (about 141 million USD) to Ukraine's arms industry, encouraging other European countries to follow suit and donate more money to the country that is in a military conflict with Russia.

Danish Prime Minister Mette Frederiksen made the pledge at a press conference in Kiev, where she is visiting to mark 1,000 days since the Russia-Ukraine military conflict began in February 2022.

“We can only have peace in Europe if we can defend ourselves,” Ms Frederiksen said, calling on European countries to follow suit and increase financial support for Ukraine, which is in dire straits after the 1,000th day of its conflict with Russia.

The Danish Prime Minister said the pledged money would come from Denmark's Ukraine fund and be channeled to Ukraine's arms production.

The Danish Prime Minister said the situation in Ukraine was worse than it appeared, reiterating Western statements that Russia would not limit its military activities to Ukraine.

“There is a lot that the rest of Europe can learn from you (Ukraine) and it is important to me that our industry, not only in Denmark but also in all neighboring countries, can come to Ukraine and learn from your experience and your ability to expand and develop your production lines,” the Danish Prime Minister said.