Verkhovna Rada Passes Draft State Budget for 2026 in First Reading

On October 22, 2025, the Verkhovna Rada of Ukraine voted in first reading to adopt the draft State Budget for 2026. A total of 256 Members of Parliament supported the decision, three voted against, and 51 abstained.

The draft budget provides for ₴4.8 trillion in expenditures and ₴2.8 trillion in revenues.

The budget has been prepared under the second scenario, which assumes that the war will continue throughout 2026. Therefore, all collected tax revenues (₴2.8 trillion) will be directed to the defense sector, while the remaining ₴2 trillion in expenditures will be financed through international assistance.

A key feature of the 2026 budget is the Government’s decision to increase social standards, which had been frozen during the war.
According to the document, from January 1, 2026, the minimum wage is to be set at:

• ₴8,647 per month,
• ₴52 per hour.

Consumer prices are projected to rise by 9.9% in 2026. Accordingly, the subsistence minimum—including the minimum pension—will be increased by the same rate.
The draft proposes the following monthly subsistence minimums as of January 1, 2026:

• for one person – ₴3,209;
• for children under 6 years – ₴2,817;
• for children aged 6–18 years – ₴3,512;
• for employable persons – ₴3,328;
• for persons who have lost their ability to work – ₴2,595.

The average exchange rate of the hryvnia to the US dollar is set at ₴45.7 per USD. This rate is purely indicative and does not influence the National Bank of Ukraine’s exchange rate policy, which operates independently.

Ukraine’s real GDP is expected to grow by 2.4% in 2026, with nominal GDP reaching ₴10.309 trillion.
Inflation (December to December) is forecast at 9.9%.

The state budget deficit is projected to be financed through international assistance amounting to USD 44 billion, of which USD 18 billion in sources have not yet been identified.

By November 2025, the Cabinet of Ministers of Ukraine must review all proposals and resubmit the document to Parliament for final approval.
The key parameters may change significantly before the second reading.

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