Since the Russian invasion in February 2022, Ukraine has been conducting a devastating war for both its society and the economy. Although the country receives multi -billion military and financial support from the USA and the European Union, maintaining the functioning of the state and the front consumes huge funds. Estimates of the International Monetary Fund indicate that the Ukrainian economy has shrunk by more than a third in the first year of war, and the reconstruction has yet required a permanent tributary of foreign funds.
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A record deficit of Ukraine in 2026. This is how the government intends to finance defense against Russia
The budget for 2026 clearly shows that Ukraine is preparing for a long -term conflict. Russia, despite the sanctions and losses on the front, maintains the ability to wage war, including thanks to increased arms production and external support, including from Iran and North Korea. In this situation, Kyiv focuses on the development of its own defense industry and the modernization of the army.
Prime Minister Svyrydenko pointed out that The government wants to ensure minimal social stability at the same time – including through benefits for military families and support of public services. This, however, in practice means further dependence on Western financial assistance, without which the state will not be able to maintain budget balance.
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– The main priority of the budget is security and defense and social stability. All domestic revenues and loans will be allocated to the needs of the armed forces – support of soldiers and their families, the expansion of air defense systems, as well as the development of their own weapon production, including drones – emphasized Swyrydenko.
According to the government, the demand for external financing will be 2.079 BRN Hryvien (approx. $ 50 billion). Kyiv hopes that these funds will be obtained from loans and international assistance, primarily from Western partners.
The draft budget act will now go to the Parliament in Kiev.
