The President of Ukraine, Volodymyr Zelensky, has signed a decree implementing the decisions of the National Security and Defense Council regarding proposals for the Budget Declaration for 2026-2028. According to this decision, funding for the defense sector will remain the main item in the state budget in the coming years. The Cabinet of Ministers is tasked with prioritizing defense expenditures in the budgets for 2026, 2027, and 2028, taking into account the current security situation in the country, while the government may adjust the funding levels depending on the military-political circumstances.
This is reported by Finway
Budget Declaration: Development Scenarios and Funding
The government has already approved the Budget Declaration for 2026-2028, which outlines the key parameters of Ukraine’s budget policy for the medium term. The document considers two possible scenarios for the development of events: the first anticipates a gradual improvement in the security situation starting in 2026, while the second considers the likelihood of continued full-scale aggression by the Russian Federation. In both cases, expenditures for the security and defense sector in 2026 will remain at the level of the current year, taking into account the relevant changes to the state budget.
“Thus, the Cabinet is instructed to prioritize funding related to defense in the state budget for 2026, 2027, and 2028. At the same time, the government will be able to adjust the volume of defense expenditures based on the military-political situation.”
Financial Planning and Investments at the Local Level
The Ministry of Finance of Ukraine, together with UNICEF, has developed a joint vision for restoring medium-term budget planning and implementing a new public investment management system at the local level. The introduction of this system will be integrated into the overall budget process, allowing local governments to effectively plan important investment projects for several years ahead within the budget framework. Strategic investment at the local level should help align community needs with national priorities, ensuring sustainable socio-economic development of the country.