Dependence of the Budget on External Financing
Social policy expert Andriy Pavlovskyi warns that Ukraine's budget for 2026 depends on external financing by 42.3%. If these funds are not received, social payments such as pensions and subsidies will be at risk.
According to the analyst, only 57.7% of all state budget expenditures can be covered by the country's internal revenues. The largest donors for Ukraine are the European Union, the USA, Japan, Canada, the IMF, and the World Bank. Taxes and fees that make up internal revenues are spent on defense and security, while the social sphere is financed by external funding.
'War makes the budget vulnerable: without external funds, it is impossible to ensure both the army and social welfare simultaneously,' notes Pavlovskyi.
Armament and Internal Assistance
Due to the crisis in military assistance from the USA, Ukraine is directing additional funds to defense. The aid from the European Union amounting to 6 billion euros will be used to procure drones for military needs.
There is also a question of supplying Tomahawk missiles under consideration. US President Donald Trump is to make a decision on this matter, but specific conditions for the use of this weapon have not yet been agreed upon with the Ukrainian side.
Additionally, Ukraine is supported by Lithuania, which is actively involved in the country's reconstruction, providing assistance in the fields of education and energy. Russian strikes on energy infrastructure have prompted assistance of more than 83 million euros from Lithuania.
Conclusion:
External financing has a significant impact on Ukraine's budget, especially in the areas of defense and social welfare. The country receives assistance from various international partners, such as the EU, the USA, as well as support from neighboring countries like Lithuania, to address important tasks in the fields of security, defense, and reconstruction.