Ukraine’s defense budget will reach a record 4.37 trillion hryvnia—parliament has approved the decision
28 May 21:23
The Verkhovna Rada has approved draft law No. 15224 in principle, which provides for a significant increase in funding for the security and defense sectors. Thanks to a financial package from the European Union, Ukraine’s military spending in 2026 will rise by 1.56 trillion hryvnias and reach a historic high of 4.37 trillion hryvnias.
A total of 240 members of parliament voted in favor of the decision to redirect the majority of European aid directly to the needs of the front lines.
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The budget changes became possible following the European Parliament’s decision to provide Ukraine with macro-financial assistance—the Ukraine Support Loan—totaling up to €90 billion for 2026–2027.
Kyiv expects the first tranche of €45 billion as early as this year. The Ministry of Finance has clearly set priorities: over 70% of these funds (€31.8 billion) will be directed toward supporting the state’s defense capabilities, while €13.2 billion will go toward social and humanitarian programs. As a result, state budget revenues will increase by 2.29 trillion UAH (to nearly 5.2 trillion UAH), providing a solid financial cushion for the Armed Forces of Ukraine.
The total increase in expenditures amounts to 1.64 trillion UAH, of which the lion’s share—1.56 trillion UAH—goes exclusively to the military. The government plans to allocate these funds across three critical areas:
- 1.37 trillion UAH has been allocated for the procurement, modernization, and repair of weapons, military equipment, and ammunition. This will allow for the financing of both large-scale orders from the Ukrainian defense industry and the import of scarce weapons.
- 174.3 billion UAH will be directed toward pay and benefits for military personnel.
- 14.6 billion UAH has been allocated to the security and defense sector’s reserve fund to cover unforeseen needs on the front lines.
In addition, the bill changes the very structure of army funding. Starting in July 2026, the military levy will be fully accumulated in a special state budget fund. This ensures that every hryvnia from this tax will go exclusively toward targeted payments to the military, protecting these funds from being reallocated for civilian needs.
In parallel with funding for the Armed Forces of Ukraine, the bill allocates funds for the stability of the home front, without which logistics and the operation of defense enterprises would be impossible. Specifically, it provides for:
- 40 billion UAH for the protection of critical infrastructure, regional energy independence, and preparations for the winter of 2026/27 (modular boiler rooms, power generation);
- 40 billion UAH to the reserve fund for addressing the consequences of Russian strikes and urgent measures under martial law.
Bill No. 15224 is being prepared for a second reading under an expedited procedure.
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