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Ukraine Approves 2026 Budget Shift, Adding ₴1.56 Trillion for Defense

EU financing enables Kyiv to shrink the 2026 deficit.

Overview

  • The Cabinet of Ministers approved amendments to the 2026 budget that add ₴1.56 trillion to security and defense, including ₴174.3 billion for troop pay, ₴1.37 trillion for weapons and equipment, and ₴14.6 billion as a reserve.
  • The Finance Ministry said total 2026 revenue will rise by ₴2,291.3 billion to ₴5,195.9 billion, which allows the projected deficit to drop from 18.5% to 12.1% of GDP.
  • The plan relies on a European Union package worth €90 billion for 2026–2027, with Ukraine expecting €45 billion this year and a first tranche in June.
  • The draft channels the wartime military tax to a special state fund from July 1, 2026, and it would earmark future export duties on military and dual-use goods for arms purchases and defense industry upgrades.
  • The revision also sets aside ₴40 billion for regional resilience and energy protection and another ₴40 billion for a rapid-response reserve.