Government proposes to increase defense funding by UAH 1.6 trillion - Svyrydenko

The Cabinet of Ministers is proposing that the Verkhovna Rada increase funding for the security and defense sector by UAH 1.6 trillion, including a UAH 174.3 billion increase in pay for military personnel. Prime Minister Yuliia Svyrydenko announced this on her Telegram channel, according to the Ukrainian News agency.

"The government has prepared amendments to the 2026 State Budget to strengthen the security and defense sector. This was made possible by the approval of a EUR 90 billion loan from the European Union for 2026–2027. This year, we expect EUR 45 billion in support, of which EUR 31.8 billion will go toward national defense and security, and another EUR 13.2 billion will be used to cover the budget deficit. The first tranche is expected as early as June," she said.

Overall, she said, state budget revenues will increase by more than UAH 2.2 trillion thanks to international support and additional revenues under the implementation of the Ukraine's Plan.

An additional UAH 1.56 trillion is allocated for the security and defense sector (after the increase, the total budget for defense and security will amount to UAH 4,367.2 billion), of which:

UAH 174.3 billion — for military personnel pay;

UAH 1.37 trillion — for the development of weapons and military equipment;

UAH 14.6 billion — a reserve for the security and defense sector.

Separate additional funds are allocated for the development of Ukraine’s defense industry, the modernization of equipment, and the expansion of domestic weapons production.

UAH 40 billion is allocated for the implementation of comprehensive regional and community resilience plans, including resources for preparing for the fall-winter period, protecting the energy sector, and ensuring the stable operation of critical infrastructure.

Another UAH 40 billion is allocated to the reserve fund for rapid response to wartime challenges.

According to a statement from the Ministry of Finance, state budget revenues for 2026 will increase by UAH 2,291.3 billion (taking into account the proposed amendments, revenues will total UAH 5,195.9 billion) thanks to three sources:

EU financial support (Enhanced Cooperation Mechanism) – UAH 2,221 billion;

additional revenues within the framework of Ukraine’s Plan (implementation of the EU’s “Ukraine Facility” initiative) – UAH 47.7 billion;

increased personal income tax (PIT) revenues due to an increase in military pay – UAH 22.6 billion.

In addition, the main administrators of state budget funds submitted proposals to reduce expenditures by UAH 276.3 million in accordance with a protocol instruction from the Cabinet of Ministers.

Thanks to significant external support in the form of grants, the state budget deficit will decrease by UAH 651.5 billion — from 18.5% to 12.1% of GDP (a reduction of 6.4%).

As the Ukrainian News agency earlier reported, in April, the European Union approved a EUR 90 billion support package for Ukraine over two years.

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