Rada supported defense budget increase following EU loan

The Verkhovna Rada voted in the first reading for the government bill on amendments to the 2026 State Budget, which provides for an increase in security and defense spending following a 90 billion euro loan from the EU, the parliament reported on Thursday, UNN writes.

Details

The Parliament adopted as a basis the draft law (No. 15224) regarding the increase of security and defense expenditures at the expense of EU support with the votes of 240 people's deputies.

The document provides for an increase in state budget expenditures by 1.64 trillion UAH.

The funds will be directed towards the procurement and modernization of weapons, financial support for military personnel, as well as the protection of energy infrastructure and replenishment of the budget's reserve fund.

What is proposed - in figures

Earlier, the head of the Verkhovna Rada Budget Committee, Roksolana Pidlasa, reported on social media that the government bill on amendments to the 2026 Budget stipulates that "state budget expenditures are increased by 1.64 trillion UAH, mainly due to the EU loan (I remind you, we will have to pay this money back only in the event of receiving Russian reparations)."

According to Pidlasa, expenditures are increased in the following areas:

• +1.56 trillion UAH for the national security and defense sector, of which:

1. +1.397 trillion UAH for increasing the defense capability and security of the state (this is the money Ukraine will receive under the EU loan this year for defense needs. It is reflected in a new separate program under the special fund).
2. +152.26 billion UAH for providing for the Armed Forces of Ukraine (this is mainly financial support/salaries).
3. +14.58 billion UAH - for replenishing the reserve of funds for the security and defense sector (a Ministry of Finance program from which they cover priority needs).
4. +3.15 billion UAH for the development of the defense-industrial complex (special fund resources due to increased revenues from the "military personal income tax").
5. +2.13 billion UAH for the State Special Transport Service (under the Ministry of Defense).
6. +9.91 billion UAH for the National Guard (this includes both financial support and weapons).
7. +6.79 billion UAH for the State Border Guard Service (likewise).
8. +4.8 billion UAH for the State Special Communications Service (drones).
9. +2.47 billion UAH for the SBU (mainly financial support).
10. +1.83 billion UAH for the Main Intelligence Directorate of the Ministry of Defense (financial support and weapons).
11. +7.8 million UAH for the Foreign Intelligence Service.

• The government proposes to allocate +40 billion UAH for the implementation of comprehensive resilience plans for regions and individual cities (a new budget program of the Ministry of Regional Development, the distribution of funds for which will be carried out by the government through its decisions);
• The government proposes to increase the reserve fund by 40 billion UAH;
• The revenue part of the budget is increased by 2.29 trillion UAH due to:

1. 1.397 trillion UAH - military support within the framework of the EU loan.
2. 824.25 billion UAH - budget support within the framework of the EU loan.
3. 47.67 billion UAH - EU funds within the framework of the Ukraine Facility.
4. 22.62 billion UAH - additional revenues from personal income tax and military tax (due to the growth of total expenditures on military salaries).

• The government proposes to direct the military tax to the financial support of the AFU military starting from July 1, 2026;
• It is proposed that in 2026, revenues from export duties on military-purpose and dual-use goods be directed to the procurement and production of weapons and financial support for AFU servicemen.

Later, MP from the Finance Committee Olha Vasylevska-Smagliuk indicated on social media regarding the bill on amendments to the state budget that "the position of the Ministry of Finance: the government bill takes into account only urgent issues related to the European Commission's decision to provide Ukraine with assistance in the amount of 45 billion euros." According to her data, "of these: 31.8 billion euros - security and defense sector; 13.2 billion euros - covering the budget deficit."

Revenues of the 2026 state budget, the MP reported, "are proposed to be increased by 2.291 trillion UAH - to 5.196 trillion UAH." Also, according to her data, "an increase in expenditures by 1 trillion 560 billion UAH is provided, in particular: for the development of weapons and special equipment; for the financial support of military personnel; for development programs; an increase in the reserve fund by 40 billion UAH (for the protection of critical infrastructure in the regions and the purchase of necessary equipment in the regions (resilience plans))."

Government allocates an additional UAH 10.8 billion for weapons procurement28.05.26, 10:48