Cabinet of Ministers approves draft state budget for 2026

On September 15, the Cabinet of Ministers of Ukraine approved the draft Law on the State Budget for 2026. This was reported by the Ministry of Finance.

In 2026, total expenditures and loans from the state budget will amount to UAH 4.8 trillion (UAH 415 billion more than in 2025 (taking into account changes).

Revenues of the general fund of the state budget for 2026 are projected at UAH 2 trillion 826.5 billion (excluding grants and other international assistance). This is UAH 446.8 billion more than in 2025, taking into account changes.

The government forecasts a state budget deficit of up to 18.4% of GDP, which is 3.9 percentage points less than in 2025.

As noted by Ukrainian Prime Minister Yulia Svyrydenko, the budget’s priorities are security and defense, and social stability. The government is directing all of its own revenues and borrowings to the Defense Forces. In particular, UAH 2.8 trillion (27.2% of GDP, +UAH 168.6 billion by 2025) is earmarked for defense and security. At least UAH 44.3 billion has been allocated for the production of weapons, including Ukrainian ammunition, missiles, missile defense, aviation, and armored vehicles.

The 2026 draft state budget allocates UAH 41.5 billion to support the economy, including:

• UAH 18 billion for the Entrepreneurship Development Fund (the “Affordable Loans 5-7-9%” program, as well as new business support instruments)
• UAH 4.8 billion – grants for business, industrial parks, investment funds,
• UAH 1.9 billion – Fund for Decarbonization and Energy Efficiency Transformation,
• UAH 0.6 billion – Energy Efficiency Fund.

The need for external financing next year will amount to UAH 2 trillion 79 billion. Government borrowing is planned in the amount of UAH 2 trillion 544.5 billion.

As noted, the Cabinet of Ministers continues to work to attract international financing from the EU, G7 countries, the International Monetary Fund, the World Bank, and other partners to fully cover budget needs.

Recall that Ukraine’s GDP growth slowed to 2.9% in 2024 from 5.5% in 2023, according to data from the State Statistics Service. Nominal GDP for the past year amounted to 7.66 trillion.