You're reading: Economy Ministry: Defense order funds used by 97% in 2015

The defense order funds were used by 97% in 2015, the press service of the Economic Development and Trade Ministry of Ukraine reported on February 5, referring to Deputy Minister Yulia Klymenko.

“The funds planned and allocated from the national budget to fulfill defense order in 2015 were used by 97%, which allowed considerably increasing the combat effectiveness of the Ukrainian Armed Forces and other forces of coercion,” the press service said, citing Klymenko.

The ministry said that Defense Ministry, Defense Intelligence of the Defense Ministry, Interior Ministry (for the needs of the National Guard), the State Border Service, State Space Agency of Ukraine, State Guard Department, Foreign Intelligence Service, the State Service of Special Communication and Information Protection, Security Service of Ukraine (SBU) and the Economic Development and Trade Ministry.

The ministry said that the key directions of state defense order in 2015 were defense research and development, purchase, repair and modernization of military equipment. A total of 78 enterprises fulfilled the order, including 54 enterprises (69%) are members of the State Concern Ukroboronprom.

The ministry’s information on the usage of funds and fulfillment of the state defense order is reflected in a ministry’s report submitted to the government on January 18, the press service said.

The ministry said that the draft state defense order for 2016 that was approved at a meeting of the National Security and Defense Council (NSDC) on January 27 includes some initiatives to optimize it.

According to information presented by the ministry early last week by then Economic Development and Trade Minister Aivaras Abromavicius at a meeting of the NSDC, the initiatives to optimize the state defense order first include proposals allowing the acceleration of its formation and strengthening control over spending of funds by governmental customers. The ministry proposed that separate budget programs on development of armament, military and special-purpose equipment are introduced for each customer.

From 2016, the Economic Development and Trade Ministry has functions of governmental customer.