**1. Substance of the Act**
This Order of the Cabinet of Ministers of Ukraine directs the remaining balance of the special fund of the state budget, accumulated as of January 1, 2026, to finance the defense sector. The total amount of reallocation exceeds 10.8 billion hryvnias, which are transferred to the disposal of the Ministry of Defence of Ukraine. These funds have a strictly designated purpose and are distributed between two key defense programs. The document also obliges the Ministry of Finance to immediately make relevant amendments to the State Budget Schedule.
**2. Structure of the Act, Main Provisions, and Amendments**
Structurally, the Order is very clear and consists of two paragraphs:
* **Paragraph 1** determines the total amount of the remaining balance of funds (10,842,606,871.43 hryvnias), the sources of their generation in accordance with the Budget Code of Ukraine (Paragraph 5-1 of Part Three of Article 29 and the first paragraph of Paragraph 60 of Section VI), and directly distributes this amount between two budget programs of the Ministry of Defence.
* **Paragraph 2** contains a procedural instruction to the Ministry of Finance of Ukraine to make amendments to the State Budget Schedule, taking into account the proposals of the defense department.
Compared to the previous allocation of budget appropriations, this act introduces changes to current financing by utilizing the carryover balance of the special fund as an exception to the general rules of budget regulation.
**3. Key Provisions for Practical Application**
For practical application and monitoring of the designated use of funds, the directions of their allocation are of primary importance:
* **9,051,362,150.8 hryvnias** are allocated to budget program **2101150**. These funds are intended exclusively for the development, procurement, modernization, and repair of armaments, military hardware, assets, and equipment.
* **1,791,244,720.63 hryvnias** are directed to budget program **2101470**. This resource is to be used for the reform and development of the defense-industrial complex, the development and implementation of new technologies, as well as the expansion of production capacities for the manufacture of defense products.
