President of Ukraine Volodymyr Zelensky signed Decree No. 682/2023, which puts into effect the decision of the National Security and Defense Council of Ukraine on financing the defense sector in 2024.
According to the text of the NSDC decision, the Cabinet of Ministers of Ukraine is instructed, during the revision of the draft law "On the State Budget of Ukraine for 2024," to allocate a total financial resource for ensuring the national security and defense of Ukraine, amounting to at least 21.6% of GDP for the security and defense sector of Ukraine, with funding for the needs of the security and defense sector of Ukraine not less than UAH 1,692,613.0 million.
In addition, the government is tasked with increasing the volume of expenditures on the national security and defense of Ukraine, taking into account the military-political situation and budgetary legislation requirements. In 2024, measures should be taken to ensure the priority financing of the activities of the entities in the security and defense sector of Ukraine.
The authorities within the security and defense sector of Ukraine are instructed to take measures to reduce accounts payable resulting from the execution of state contracts for the purchase of goods, works, and services of defense purposes. They should also prevent the accumulation of overdue accounts payable and ensure proper organization of claims and litigation work to reduce overdue accounts payable. Furthermore, they are required to strengthen financial discipline in the management of budgetary allocations and ensure the targeted, efficient, and effective use of funds for the financing of the activities of entities in the security and defense sector.
