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Cabinet in Budget Declaration for 2026-2028 provides for gradual decrease in spending on security and defense

The Cabinet of Ministers in the Budget Declaration for 2026-2028 provided for a gradual decrease in spending on security and defense. This is stated in the Budget Declaration, approved by Cabinet Resolution No. 774 of June 27, the Ukrainian News agency reports.

"The volume of state budget expenditures for the medium-term period on security and defense is determined for 2026 in the amount of UAH 1,817,152.3 million; 2027 – UAH 1,439,092 million; 2028 - UAH 1,383,639.4 million, taking into account the assumption of a significant improvement in the security situation from 2026," the document states.

It is noted that Ukraine proposes to international partners from the Coalition of the Willing to create a separate fund to finance the needs of the security and defense forces of Ukraine, believing that such a decision will allow maintaining the necessary number of military personnel to prevent the resumption of armed aggression by the russian federation against Ukraine, and will also be one of the factors guaranteeing security for European partners.

The volumes of expenditures for the security and defense sector according to the proposals of the main administrators of budget funds included in the security and defense sector take into account expenditures for the fulfillment of medium-term obligations under state contracts (agreements) for the purchase of weapons, military equipment, weapons and ammunition for 2026 in the amount of UAH 134,333.4 million, for 2027 - UAH 124,365.2 million, for 2028 - UAH 10,913.5 million.

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In addition, to ensure the systematic development of innovative solutions in the security and defense sector in 2026-2028, it is planned to continue the practice of providing grant support to developers of defense technologies (Brave1), which will be selected based on the results of competitions. To finance such support, it is planned to increase the authorized capital of the Innovation Development Fund.

The budget declaration also provides for an alternative scenario. In particular, it is noted that the presence of extreme uncertainty regarding the further implementation of security risks requires the provision of a separate section that will outline a range of issues that will require a rapid response from the Ukrainian authorities, Ukraine's international partners, and society in the context of continued russian armed aggression against Ukraine.

As the Ukrainian News agency earlier reported, on June 27, President Volodymyr Zelenskyy put into effect the decision of the National Security and Defense Council (NSDC) on the priority of financing national security and defense in state budgets for 2026-2028. At the same time, the Cabinet of Ministers is instructed to provide for the possibility of adjusting the volume of expenditures on national security and defense, taking into account the military-political situation, when preparing draft laws on the state budget for 2026-2028.

In June, the Cabinet of Ministers proposed to the Verkhovna Rada to increase funding for the Security and Defense Forces in 2025 by UAH 412 billion.

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The 2025 state budget provides for expenditures on national security and defense of UAH 2.2 trillion, or 26.3% of GDP.

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