Ukraine’s government has taken steps to utilize income tax paid by service personnel for financing wartime arms purchases and production. The current system channels this tax towards local budgets; however, redirecting it to the central budget would enable increased support for Ukraine’s security and defense forces. This initiative comes in response to Russia’s invasion in February 2022, which prompted Ukraine to bolster its weapons production and receive aid from Western allies. By reallocating a portion of the tax funds, Ukraine aims to narrow the military capabilities gap with its larger neighbor. Prime Minister Denys Shmyhal emphasized the importance of providing additional resources for the Security and Defence Forces. The draft law proposes allocating 25.8 billion hryvnias to the state budget this year and 93.7 billion hryvnias next year. Local budgets will retain over 200 billion hryvnias, while communities facing funding shortages will receive subsidies from the state. This strategic reallocation of funds aims to enhance Ukraine’s ability to defend itself and ensure a more robust national security framework.