The Verkhovna Rada has begun considering the draft law "On the State Budget of Ukraine for 2026". A vote on the document may take place 75 minutes after the discussion of reports by Finance Minister Serhiy Marchenko and Budget Committee Chairwoman Roksolana Pidlasa.
The Verkhovna Rada Committee on Budget voted the State Budget for 2026 for the second reading. Proposed changes include an increase in the personal income tax percentage for local budgets and additional funds for arms procurement.
Roksolana Pidlasa, head of the Verkhovna Rada budget committee, announced that Ukraine could receive the first tranche under the new IMF program, amounting to approximately $8 billion, in January 2026. The total volume of the four-year IMF program is about $8 billion.
Ukraine expects a tranche of direct budget assistance from the EU totaling 6 billion euros on November 13. The funds include 4.1 billion euros under ERA loans and 1.9 billion euros under the Ukraine Facility.
The Budget Committee recommended the draft law on Budget-2026 for the first reading. The committee proposes that the government make changes in the areas of defense, education, healthcare, local budgets, social sphere, and business support.
The government approved amendments to the 2025 Budget, increasing expenditures by 317 billion hryvnias, primarily for military salaries.
The first reading of the draft law on the State Budget of Ukraine for 2026 is scheduled for October 21-23. The main challenge is numerous proposals to increase expenditures that do not have realistic sources of funding.
The National Bank of Ukraine set the official hryvnia exchange rate at UAH 41. 2764/USD, which devalued the hryvnia by five kopecks. The euro exchange rate is UAH 48.50/EUR, and the zloty exchange rate is UAH 11.39/PLN.
Roksolana Pidlasa, Head of the Budget Committee of the Verkhovna Rada of Ukraine, stated that there can be no delays in military salaries. To cover temporary liquidity gaps, the government attracts money from the placement of domestic government bonds.
Ukraine's state budget revenues for January-September 2025 exceeded planned targets by UAH 71. 1 billion, reaching UAH 1.6 trillion. Defense expenditures are fully financed by own resources, while international aid is directed to social and civilian needs.
People's Deputy Roksolana Pidlasa said that in order to increase defense spending, an additional source of income must be found. Ukraine plans to negotiate with partners on using their funds for defense needs.
In 2026, Ukraine plans to spend UAH 2. 8 trillion on national security and defense, of which UAH 955 billion will go to the procurement and production of weapons. This accounts for a third of all funds allocated for defense, with 60% of the budget to be directed to defense until the end of hostilities.
Economist Oleh Pendzyn stated that the main issue of the State Budget-2026 is finding 120 billion dollars for defense, of which 60 billion dollars should be provided by partners.
State budget expenditures for 2026 are planned at UAH 4. 8 trillion, which is three times the pre-war level. The largest expenditure item is national security and defense, for which UAH 2.8 trillion has been allocated.
After joining the EU, Ukraine will make contributions to its budget, which will include customs duties, VAT, and a monetary contribution proportional to GNI.
The Verkhovna Rada approved changes to the State Budget-2025 for UAH 36. 7 billion, reallocating non-military expenditures. Additional funds will go to the reserve fund, the Ministry of Digital Transformation, grants for defense tech, and school meals.
The Verkhovna Rada will not be able to consider draft law No. 13439-3 on budget amendments. A new draft law No. 13573 has been registered, which provides for an increase in defense sector expenditures by UAH 412.3 billion, including monetary support for military personnel and the purchase of weapons.
Ukraine allocates 31. 1% of GDP to defense, which is the highest figure in the world. After amendments to the 2025 Budget, the financial resources for the national security and defense sector will amount to UAH 2.6 trillion.
Due to reduced international supplies, Ukraine increased its own arms purchases and production expenditures. The military needs additional expenditures for the second half of the year, which will be covered by domestic loan bonds and overfulfillment of budget revenues.
Minister of Finance Serhiy Marchenko expressed hope that the Verkhovna Rada will vote for changes to the state budget at the next session. The Cabinet of Ministers is preparing a comprehensive law on changes that will concern additional defense needs.
The Cabinet is preparing amendments to the state budget for UAH 400 billion for the needs of the military. Funding will be provided by exceeding revenues, domestic government bonds and grants from partners.
Roksolana Pidlasa explained that Orban could not block the EU's €35 billion allocation to Ukraine. All that is needed to disburse the funds is a simple majority vote in the EU Council, not a unanimous decision.
EU envoys agree to provide Ukraine with €35 billion from frozen Russian assets. According to Prime Minister Shmyhal, the funds should be available by the end of 2024.
The head of the Budget Committee, Roksolana Pidlasa, explained the need to distribute the $50 billion loan from the EU and the US over two years. This is due to the one-time nature of the payment and the lack of new agreements for the future.
The draft state budget for 2025 is currently being reviewed for amendments. It provides for UAH 2.2 trillion for defense, including UAH 1.2 trillion for military salaries and UAH 737 billion for weapons. The vote in the Rada is scheduled for the end of November.
More than UAH 152 billion in revenues are expected from the draft law on tax increases. The main revenues will come from the bank tax and the tax on profits of financial companies, said the head of the Verkhovna Rada Budget Committee.
The draft State Budget 2025 provides UAH 43. 2 billion for the Road Fund, which contradicts the promises to allocate all additional excise taxes to defense. This drew criticism from MPs and members of the Budget Committee.
By the end of the year, a budget deficit of almost UAH 5 billion will be formed due to the use of funds intended for monetary support of the military for the purchase of weapons in the first quarter of 2024.
The parliamentarians discussed with IMF representatives the attraction of international assistance in the amount of $37 billion and more than 400 billion hryvnias for Ukraine's military campaign.
Head of the Parliamentary Budget Committee Pidlasa met with IMF representatives in Kyiv to discuss the economic situation in Ukraine and progress in implementing structural reforms under the IMF program.
