Cabinet Approves Record Defense Spending Hike in 2026 Budget

Amendments to the 2026 State Budget

According to Мінфін: The Ukrainian government has greenlit a draft law revising the 2026 State Budget, backed by a €45 billion financial package from the European Union under the Ukraine Support Loan program. These amendments dramatically boost expenditures for defense and security, alongside funding to prepare regions for the winter season. This move comes as Ukraine continues to face ongoing geopolitical pressures and seeks to fortify its national resilience.

Key Adjustments

What is changing? An additional UAH 1,560.1 billion has been allocated for defense and security, raising the total defense budget to UAH 4,367.2 billion. This sum breaks down as follows:

• UAH 174.3 billion earmarked for military salaries;
• UAH 1,371.2 billion dedicated to procuring weapons, equipment, and ammunition;
• UAH 14.6 billion set aside as a reserve for security sector needs.

Beyond defense, UAH 40 billion will go toward regional winter resilience as part of preparations for the 2026/27 heating season, with another UAH 40 billion added to the Reserve Fund.

According to updated figures, budget revenues are rising by UAH 2,291.3 billion, while the state budget deficit is projected to shrink from 18.5% to 12.1% of GDP. The draft law will now be submitted to the Verkhovna Rada for review and approval.

Passing this legislation marks a critical step in strengthening Ukraine’s national security and defense capabilities amid the current geopolitical landscape. The increased spending on winter preparedness also underscores the government’s focus on ensuring social stability and energy security for its citizens. Approval is expected to deepen Ukraine’s cooperation with international partners, especially the European Union, in advancing reforms and economic recovery.

In light of the recent budget amendments, the Ukrainian government's commitment to enhancing its defense capabilities is further solidified by substantial financial support from the EU. This aligns with a broader strategy to bolster national security, as highlighted in a recent report on a significant €90 billion loan that aims to strengthen Ukraine's military budget and support ongoing reforms.