Budget-2026: 2.8 trillion hryvnias for defense and salary increases for teachers

Draft law on the state budget for 2026

Parliament has approved the law on the state budget for 2026, with the main priority being to strengthen the country's defense capabilities. 257 members of parliament voted for the document. 2.8 trillion hryvnias is earmarked for security and defense, indicating the state's intentions to bolster its defense capabilities.

Main indicators of the budget-2026

Overall, the budget-2026 provides for expenditures of 4.8 trillion hryvnias, of which budget revenues will amount to about 2.8 trillion hryvnias. The budget deficit is estimated at approximately 1.9 trillion hryvnias, or 18.4% of GDP. Local budgets will receive an additional 4% from personal income tax, which will total 64%. At the same time, the subsidy for the difference in tariffs amounting to 15.2 billion hryvnias has been excluded from the budget.

In addition, an extra billion hryvnias will be allocated for the purchase of weapons and military equipment. In the education sector, a 30% increase in teachers' salaries is planned from January 1 and a 20% increase from September 1. The minimum wage will increase from 8,000 to 8,647 hryvnias starting January 1, while the subsistence minimum for working-age individuals will rise from 3,028 to 3,328 hryvnias. The subsistence minimum for disabled individuals will also increase from 2,361 to 2,595 hryvnias from January 1.

• The social sector will receive 467.1 billion hryvnias;
• Education — 120 billion hryvnias;
• For regional development, 871.9 billion hryvnias is planned;
• 15 billion hryvnias is allocated for housing for internally displaced persons;
• The reserve fund will amount to 54.5 billion hryvnias;
• The tax on bank profits is raised from 25% to 50%;
• It is planned to attract 60 billion hryvnias from customs reform.

Voting by factions showed that the most support for the document came from the 'Servant of the People' faction — 193 votes. Other factions, such as 'Platform for Life and Peace', 'Trust', 'Restoration', and 'For the Future', also contributed, but the 'EU' and 'Fatherland' factions did not support the document.

As President Volodymyr Zelensky stated, 'this is an important signal of Ukraine's resilience and stable financial support for the needs of next year.'

The adoption of the budget for 2026 underscores the priority of national security amid an ongoing conflict and the need to support internal development. The increase in defense spending, along with the rise in social standards, particularly teachers' salaries and subsistence minimums, reflects the government's commitment to ensuring stability in the social sphere and supporting the most vulnerable segments of the population. Continued funding for defense needs may also signal to international partners the seriousness of Ukraine's intentions to strengthen its defense capabilities.