Cabinet approves draft state budget-2026 for 2nd reading

The Cabinet of Ministers has approved the draft state budget for 2026 for the 2nd reading.

The Ministry of Finance has said this in a statement, the Ukrainian News agency reports.

Compared to the first reading, state budget revenues have been increased by UAH 27.8 billion, expenditures by UAH 33.6 billion, and the maximum deficit by UAH 5.8 billion.

According to the results of the revision, the state budget revenues (excluding inter-budget transfers) are set at UAH 2 trillion 854.3 billion, expenditures at UAH 4 trillion 837.4 billion, and the deficit at UAH 1 trillion 900 billion, which is 18.4% of GDP.

It is planned to increase state budget revenues due to changes in the tax sector and clarification of revenue forecasts.

In particular, increasing the tax rate on banking institutions' profits from 25% to 50% (draft law No. 14097) will provide an additional approximately UAH 30 billion.

Part of this tax, which was previously credited to local budgets, is directed to a special fund of the state budget – another UAH 4.3 billion.

Additional revenues are also expected from an increase in dividends of PJSC "Ukrainian Financial Housing Company" — +UAH 1.3 billion.

At the same time, a technical adjustment was made to the World Bank's grant revenues under the RELINC project: a grant of UAH 5 billion was replaced by a concessional loan guaranteed by the European Commission within the framework of the Ukraine Facility mechanism.

The increase in expenditures is due to the clarification and strengthening of priority areas of financing. Additional resources will be directed, in particular, to:

- reserve fund: +UAH 18.9 billion (total of UAH 54.5 billion) for an operational response to wartime challenges;

- teacher salaries: +UAH 6.6 billion (total of UAH 190.5 billion) — a phased increase (over the year) by 50% of the level of remuneration not only for school teachers, but also for pedagogical and scientific-pedagogical employees of higher education institutions and institutions of professional pre-higher education of state ownership;

- public investment projects: +UAH 4.3 billion (total of UAH 107.2 billion) — includes the continuation of the passenger car renovation program;

- state housing policy: +UAH 1.3 billion (total of UAH 46.5 billion) — through PJSC "Ukrainian Financial Housing Company".

As the Ukrainian News agency earlier reported, on September 15, the Cabinet of Ministers approved the draft state budget for 2026 and submitted it to the Verkhovna Rada for approval. The total expenditures of the 2026 state budget will amount to UAH 4.8 trillion, it provides for an increase in spending on security and defense to UAH 2.8 trillion, or 27.2% of GDP, which is UAH 168.6 billion more compared to 2025.

Parliamentarians proposed amendments to the draft state budget for 2026 for UAH 7 trillion - this is an additional one and a half budgets.

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