Budget of Resilience: what Ukraine’s economic strategy for 2026 looks like
The Cabinet of Ministers has approved the draft State Budget for 2026 and submitted it for consideration to the Verkhovna Rada. Expenditures are planned at ₴4.8 trillion (₴415 billion more compared to 2025), and revenues at ₴2.826 trillion (₴446.8 billion or 18.8% more than in 2025). The deficit is projected to be up to 18.4% of GDP, which is 3.9 percentage points lower than in 2025.
The main priority of the budget is strengthening security and social resilience. The government allocates all its own revenues and borrowings to support the Defense Forces including military salaries, family support, enhanced air defense, and the development and production of domestic weapons, particularly drones.
The need for external financing is expected to amount to ₴2.079 trillion.
Key budget directions for 2026
Defense
The government plans to allocate ₴2.8 trillion to the security and defense sector, which equals 27.2% of GDP and is ₴168.6 billion more than in 2025. At least ₴44.3 billion will go toward the production of Ukrainian ammunition, missiles, missile defense systems, as well as aviation and armored vehicles.
Education
- A 50% increase in average teacher salaries in two stages (by 30% from January 1, 2026, and by another 20% from September 1, 2026)
- Free meals for 4.4 million students in grades 1-11 starting October 1, 2026
- Doubling scholarships for over 163,000 students from September 1, 2026
Science
A total of ₴19.9 billion is planned (₴5.4 billion more than in 2025), including funding for:
- Programs supporting young researchers and leading scientific institutions
- Establishing defense research centers
- Conducting R&D on demand from businesses
Healthcare
₴258 billion is allocated for the healthcare system (₴38 billion more than in 2025), with priorities including:
- Increasing salaries for primary and emergency care physicians to ₴35,000, especially in frontline regions
- Boosting the Medical Guarantee Program to ₴191.6 billion (₴16.1 billion more than in 2025)
- Providing citizens with free medication, particularly for cardiovascular disease, diabetes, and other chronic illnesses
Social programs and citizen support in the 2026 State Budget
Medical programs
“Checkup 40+”: the new targeted aid program is budgeted at ₴10 billion. It will allow citizens aged 40+ to undergo comprehensive health screening, including checks for heart disease, diabetes, and mental health.
Pension system
₴1.027 trillion is allocated for pensions, which is ₴123.4 billion more than in 2025. The indexation of pension payments is provided.
Social protection
Total funding will be ₴467.1 billion (₴45.3 billion more than in 2025). These funds will support:
- Internally displaced persons
- People with disabilities and prosthetics
- Programs like “eNursery” and “School Starter Pack”
- A new demographic development support initiative (₴24.5 billion), including prenatal assistance, one-time birth payments, and support for childcare up to age one
Veteran policy
₴17.9 billion is allocated to support veterans (₴6.1 billion more than in 2025). This includes:
- Housing compensation for veterans with Group I and II disabilities
- Integration and support programs for veterans
- Employment of veteran support specialists and veteran spaces
Additionally, ₴0.8 billion is allocated for dental services for veterans
Regional development and investment
Regional revenues
In 2026, total regional revenues are projected at ₴871.9 billion (₴162.3 billion more than in 2025). Inter-budget transfers to local budgets from the general fund will amount to ₴289.3 billion.
Business support
₴41.5 billion is allocated for business development programs, including:
- Affordable loans “5-7-9%“
- The “eResidence” housing program
- Development of industrial parks
- Grants for producers
- Continuation of the Brave1 defense innovation program
Agricultural sector
₴13.1 billion is allocated (₴3.5 billion more than in 2025), with priorities including:
- Grant programs
- Loan interest compensation for agribusinesses under “5-7-9%“
- ₴200 million in subsidies for the construction and reconstruction of irrigation systems
Culture
₴4.7 billion will support the cultural sector, with emphasis on:
- Creating content that strengthens national identity
- Promoting Ukrainian products internationally
Public investment
₴45.9 billion is planned for recovery and modernization of infrastructure, which is ₴12.4 billion more than the previous year.
“I thank all ministries for drafting a budget that considers the needs of our Defense and Security Forces, support for veterans and their families, all necessary social payments, as well as the expenses that ensure Ukraine’s resilience during wartime,” – wrote Yuliia Svyrydenko.
Timeline of the Budget Review Process
MP Yaroslav Zhelezniak previously noted that once submitted to the Rada, the document will go through the standard budget procedure.
- September 17 review and presentation at the Budget Committee meeting
- September 19–20 presentation in the Verkhovna Rada (no voting stage). After this, MPs may submit amendments until October 1
- By mid-October Budget Committee prepares a proposal table and budget conclusions
- By October 20 voting on conclusions (first reading), requiring at least 226 votes
- By November 20 the government finalizes the document, followed by second and final readings, each requiring 226 votes
What awaits Ukraine’s economy in 2026?
According to Cabinet resolution №946, the macroeconomic and social development indicators reflect cautious optimism.
Under the baseline scenario:
- GDP will grow by 4.5%
- Nominal GDP will reach ₴10.44 trillion
- Inflation will be 8.6% by year-end
Under a more pessimistic scenario:
- GDP will grow by 2.4%
- Nominal GDP will reach ₴10.3 trillion
- Inflation will be 9.9%
- Exports of goods and services will increase by 6% to $61.4 billion
- Imports will grow by 7.6% to $105.8 billion
- The trade balance will be $44.5 billion
The exchange rate in 2026 may fluctuate widely from ₴44.7 to ₴50.6 per US dollar, depending on the scenario.
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