Members of the Verkhovna Rada (VR) have accepted for consideration the draft State Budget of Ukraine for 2026, already dubbed the “defense budget,” as it allocates almost all state revenues to the war. This marks the formal start of the budget process in parliament.
Source: OBOZREVATEL
The Cabinet of Ministers registered the corresponding bill No. 14000 in parliament on September 15—the last day allowed under the Budget Code. On September 19, government representatives presented the draft budget to parliament, and deputies also approved its consideration on time—one day before the legal deadline of September 20. Voting is not required at this stage.
Deputies will then have until October 1 to review the document and submit their proposals. Approval of the budget proposals (“first reading”) is scheduled by October 20, and according to the Budget Code, the budget must be finally approved (“second reading”) by November 20.
“The draft of the main financial document has been prepared based on a strategic planning system… It is formed on the assumption that the war will continue throughout 2026. Therefore, the key priority remains funding the security and defense sector,” Finance Minister Serhiy Marchenko stated while presenting the draft state budget in the Rada.
OBOZ.UA reviewed the draft budget for next year and learned the government’s forecasts for GDP growth, prices, the hryvnia exchange rate, salaries, pensions, and other important indicators affecting every Ukrainian.
Prices, salaries, pensions, and the dollar exchange rate
According to the macroeconomic forecast underlying the 2026 budget, the growth of Ukraine’s nominal GDP will continue to slow, expected to rise by only 2.4% next year compared to 2.7% in 2025 and 2.9% in 2024. Meanwhile, consumer prices are projected to increase by 9.9%.
The Cabinet also forecasts a rise in the average salaries of Ukrainians—from 25,886 UAH to 30,032 UAH. For the first time since 2024, a number of social indicators will be “unfrozen” and will increase as follows:
- Minimum wage: from 8,000 to 8,647 UAH
- Subsistence minimum: from 2,920 to 3,209 UAH
- Minimum pension: from 2,361 to 2,595 UAH
However, there is bad news for the population—a significant devaluation of the national currency. The dollar exchange rate is set in the budget at 45.7 UAH/USD, more than 3 UAH higher than this year.
Бюджет-2026: основні показники
- General Fund Revenues: 2.826 trillion UAH
- General Fund Expenditures: 4.803 trillion UAH
Nominal GDP: 10.309 trillion UAH
State Budget Deficit: 41.16% of GDP
Need for International Support: 2.079 trillion UAH
Reserve Fund: 140 billion UAH
External Borrowing: 2.124 trillion UAH
Internal Borrowing: 419.6 billion UAH
Financial Resources for the Security and Defense Sector: 2.805 trillion UAH (27.2% of GDP)
Support for Socially Vulnerable Citizens: 433 billion UAH (of which: Pension Fund – 251.3 billion UAH, basic social assistance – 9.2 billion UAH, payments and support programs for IDPs – 48.4 billion UAH, and benefits and subsidies – 42.3 billion UAH)
Scientific Research: 19.9 billion UAH
Education: 265.4 billion UAH
Healthcare: 258 billion UAH
Citizen Housing Support: 15.8 billion UAH
Subsidy to Local Budgets: 36.1 billion UAH
Entrepreneurship Development Fund: 18 billion UAH (preferential loans under the “5-7-9%” program)
Support for Families and Encouragement of Birth Rates: 24.5 billion UAH
Support for Veterans and Assistance with Their Social Integration: 18.9 billion UAH
Humanitarian Land Demining: 1 billion UAH
This means that funding for the security and defense sector in 2025 will increase by 168.6 billion UAH, or 6.4%. In addition to spending on weapons and military equipment, this item also includes expenditures on salaries for military personnel and defense research and development.
Due to a significant increase in expenditures, Ukraine’s need for international support has also become even greater. In 2026, it will amount to 2.079 trillion UAH, which is 347 billion more than this year. The Cabinet of Ministers plans to cover this need through international macro-financial programs—from the European Union, the United Kingdom, the World Bank, the International Monetary Fund, and other partners and international financial organizations.
