The Verkhovna Rada approved in the first reading changes to the state budget for 2026, which foresee a significant increase in funding for the defense sector and critical infrastructure. These adjustments became possible due to the expected large-scale macro-financial support from the European Union under the Ukraine Support Loan program.
This is reported by Finway
Key parameters of the updated budget
It is planned to attract about 45 billion euros in external funding to support the Ukrainian economy and defense capabilities. The budget update increases the revenues of the state treasury by 2.29 trillion UAH, while the budget deficit is significantly reduced to 12.1% of GDP (previously – 18.5%).
“The updated document effectively fixes the new financial priorities of the state: maximum concentration of resources on defense, growth of international aid’s role, formation of enhanced security reserves, investments in the resilience of the energy system.”
Strengthening the defense sector and supporting energy
The largest increase in funding is planned for the security sector. An additional 1.56 trillion UAH is allocated for defense, raising the total defense budget to 4.367 trillion UAH. Of this amount, 174.3 billion UAH is designated for the monetary support of military personnel, and 1.371 trillion UAH is for the procurement of weapons, military equipment, and ammunition. An additional 14.6 billion UAH is allocated as a reserve for urgent needs in the security sector.
A significant emphasis in the budget is also placed on the energy resilience of the regions. For relevant measures, including backup generation, heating supply, and protection of critical facilities, 40 billion UAH is allocated. Another 40 billion UAH will be directed to the Reserve Fund for rapid response to potential crisis situations.
The change in the budget model underscores new state priorities — maximum allocation of resources for defense, strengthening security reserves, expanding support from international partners, and investing in energy resilience.
After the first reading, the draft law is being prepared for a second review under a shortened procedure, where the final distribution of funds among key areas and main administrators will be determined.
It is worth noting that in April 2026, the general fund of the state budget of Ukraine received 302.6 billion UAH, exceeding planned indicators. According to the State Tax Service, the execution amounted to 104.2% (+3.8 billion UAH), while the customs service ensured 101% (+0.8 billion UAH).