Business news from Ukraine

Business news from Ukraine

Salaries and social payments still account for bulk of government spending

The largest share of cash expenditures from Ukraine’s general fund budget for January-October 2025 was spent on wages and benefits, amounting to UAH 1.26 trillion, according to the Ministry of Finance.

According to the Ministry of Finance, in October, UAH 133.1 billion was allocated to wages and accruals, which is 39.9% of the total expenditures of the general fund for the month. Compared to the same period in 2024, labor costs increased by UAH 220.7 billion, or 21.2%, over ten months, including UAH 19.9 billion, or 17.6%, in October.

Expenditures on goods and services for January-October 2025 amounted to UAH 458 billion, including UAH 60.7 billion in October, or 14.5% of the total. In the first ten months of 2024, these expenditures amounted to UAH 416.9 billion, including UAH 53 billion in October, which indicates a significant increase in purchases of goods and services for the budget sector.

In January-October, UAH 524.4 billion, or 16.6% of all general fund expenditures, was allocated to social security—the payment of pensions, benefits, and scholarships. This is UAH 58.4 billion, or 12.5% more than in the same period last year. At the same time, in October 2025, social expenditures were lower than a year earlier—UAH 49.4 billion versus UAH 54.2 billion.

Expenditures on subsidies and current transfers to enterprises, institutions, and organizations for ten months amounted to UAH 384.4 billion, or 12.1% of the total, including UAH 37.3 billion in October. Compared to January-October 2024, these expenditures increased by UAH 117.9 billion, or 44.2%, reflecting the expansion of support for certain sectors of the economy and critical infrastructure.

Servicing the national debt cost the general fund of the state budget UAH 279.9 billion, or 8.8% of all expenditures, in the first ten months of 2025. In October, UAH 33.6 billion was allocated for these purposes. This is UAH 36.3 billion more than in the same period last year, which is due to both an increase in the volume of debt and a change in borrowing conditions.

Finally, UAH 156.3 billion, or 4.9% of general fund expenditures for January-October, was used for transfers to local budgets, including UAH 16.9 billion in October. Compared to the first ten months of 2024, these expenditures increased by UAH 9.3 billion, or 6.3%.

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