Amendments to Ukraine's 2026 State Budget
On May 28, the Verkhovna Rada of Ukraine approved in the first reading amendments to the 2026 state budget, following the European Union's agreement to provide a €90 billion loan for 2026-2027. The decision was backed by 240 lawmakers. As part of the expected international support, Ukraine plans to secure approximately €45 billion, allocated as follows:
- €31.8 billion will go to the defense and security sector;
- €13.2 billion will cover the state budget deficit.
The first tranche of funding is expected in June.
Funding for the Security and Defense Sector
The budget amendments call for a substantial increase in state revenues, rising by more than UAH 2.2 trillion. A total of UAH 1.56 trillion has been allocated for the security and defense sector. Out of this amount:
- UAH 1.37 trillion will be spent on developing weapons and military equipment;
- UAH 174.3 billion will cover military personnel salaries;
- UAH 14.6 billion will go to a strategic reserve for the security and defense sector.
Additionally, UAH 40 billion is earmarked for implementing resilience plans for regions and communities, and another UAH 40 billion for the state budget's Reserve Fund.
On the same day, the Verkhovna Rada ratified the agreement with the EU for the €90 billion loan, with 298 lawmakers voting in favor. Parliament noted that
“the document allows for attracting financial assistance from the EU totaling up to €90 billion in 2026-2027. These funds will be used to cover the state budget deficit, ensure macroeconomic stability, and strengthen the defense-industrial potential.”
The Cabinet of Ministers of Ukraine also allocated an additional UAH 10.84 billion to bolster the country's defense capabilities.
These decisions are crucial for Ukraine amid the ongoing war and the need to enhance its defensive capacity. Securing EU financing not only helps bridge the budget gap but also enables the modernization of military assets. Successful implementation of these measures could significantly impact the country's economic stability and security in the years ahead.
As these budget amendments highlight Ukraine's commitment to strengthening its defense capabilities, the recent €90 billion loan from the EU plays a pivotal role in facilitating this financial boost. This support not only aims to address immediate military needs but also to enhance the long-term stability of the nation's defense sector.