The Cabinet of Ministers of Ukraine has approved the draft law on the State Budget for 2026. According to the document, the total expenditures of the state treasury will amount to 4.8 trillion hryvnias, which is 415 billion more compared to 2025. Budget revenues are planned to be over 2.83 trillion hryvnias (excluding grants and international aid), which exceeds the adjusted figure for the current year by 446.8 billion. The government forecasts a budget deficit of 18.4% of GDP — this is 3.9 percentage points lower than what was projected for 2025.
This is reported by Finway
Main Areas of Funding for the National Budget
Prime Minister Yulia Svyrydenko emphasized that the key priorities remain security, defense, and ensuring social stability. A total of 2.8 trillion hryvnias (27.2% of GDP, an increase of 168.6 billion UAH) is planned for the defense sector and security, of which no less than 44.3 billion UAH will be allocated for the production of weapons. For the first time, the budget includes the creation of a “defense reserve” amounting to 200 billion hryvnias. Funds from this reserve can be distributed by the government without parliamentary approval, and 60 billion UAH for the reserve is planned to be raised through the de-shadowing of the economy.
“The priority is security and defense, as well as social stability. Thus, ₴2.8 trillion (27.2% of GDP, +₴168.6 billion) is allocated for defense and security. For the production of weapons – at least ₴44.3 billion. For the first time, the budget includes the creation of a ‘defense reserve’ of ₴200 billion, the funds from which the government can distribute without parliamentary approval. At the same time, ₴60 billion for this reserve is expected to be collected through the ‘de-shadowing’ of the economy.”
Support for the Economy and Investment Programs
For economic development support, 41.5 billion UAH is allocated, of which 18 billion UAH will be directed to the Entrepreneurship Development Fund. Another 4.8 billion UAH will be allocated for grants for businesses, industrial parks, and investment nannies. The Decarbonization and Energy Efficiency Transformation Fund will receive 1.9 billion UAH, while the Energy Efficiency Fund will receive 0.6 billion UAH.
The agro-industrial complex will receive funding of 13.1 billion UAH, which is 3.5 billion more than in the current year. Additionally, the draft state budget includes 1.9 billion UAH for the implementation of the agreement between Ukraine and the USA regarding the establishment of the American-Ukrainian Investment Fund for Reconstruction.
External financing will need to be attracted in the amount of 2.08 trillion UAH, while state borrowings are planned at the level of 2.545 trillion UAH. Public investments for the restoration and modernization of the country will amount to 45.9 billion UAH, which is 12.4 billion more than in the previous year.
The government forecasts Ukraine’s economic growth in 2026 at 2.4%. Inflation is expected to be at 9.9%, and the state debt by the end of 2026 may reach 106% of GDP.