Verkhovna Rada Adopts the State Budget of Ukraine for 2026

At its plenary session on 3 December 2025, the Verkhovna Rada of Ukraine adopted, at the second reading and as a whole, the Draft Law “On the State Budget of Ukraine for 2026” (Reg. No. 14000 dated 15 September 2025).

Thus, the requirement of the International Monetary Fund to adopt the State Budget for 2026 by 1 January was fulfilled.

A total of 257 Members of Parliament voted in favor of the bill (Servant of the People – 193, Platform for Life and Peace – 16, Dovira – 16, Restoration – 11, For the Future party – 11, Holos – 1, non-affiliated MPs – 9; the European Solidarity and Batkivshchyna factions did not vote). 37 MPs voted against, 24 abstained, and 27 did not vote.

The budget priorities include defense and security, education, social protection, and healthcare. However, while education workers will receive pay increases, military personnel will not.

Following the Government’s revision of the budget conclusions for the second reading, revenues were increased to UAH 2 trillion 904.6 billion (the general fund amounts to UAH 2 trillion 610.9 billion, and the special fund to UAH 293.7 billion). Revenues in 2026 will be UAH 402 billion higher than in 2025.

Expenditures and lending from the state budget in 2026 will amount to UAH 4 trillion 824.1 billion, which is UAH 121.2 billion more than in 2025. The general fund will account for UAH 4 trillion 402.3 billion, and the special fund for UAH 421.8 billion.

The budget deficit is expected to be about UAH 2.4 trillion, or 18.5% of GDP.

There are currently no identified sources to cover a significant portion of this deficit, namely USD 19 billion (about UAH 800 billion). The Government had previously hoped that such a source could be a reparations loan from the European Union, but as of now, no final decision on the allocation of funds has been made.

The situation regarding the receipt of funds from international partners remains a serious problem, since all budget expenditures are financed through these funds, while domestic revenues are used exclusively for the needs of the army.

Meanwhile, the opposition stated that there are UAH 68 billion in inefficient and populist expenditures, including the financing of the programs “National Cashback,” “Winter Support,” and the allocation of UAH 4 billion for “strategic communications.”

For the first time since 2023, the 2026 budget provides for an increase in social standards:

– minimum wage – from UAH 8,000 to UAH 8,647;
– general subsistence minimum – from UAH 2,920 to UAH 3,209;
– subsistence minimum for able-bodied persons – from UAH 3,028 to UAH 3,328;
– subsistence minimum for persons who have lost working capacity – from UAH 2,361 to UAH 2,595.

The budget sets an average projected exchange rate of UAH 45.7 per US dollar and UAH 49.4 per euro.

After the adoption of the Law “On the State Budget of Ukraine for 2026” by the Verkhovna Rada, the document is submitted to the President of Ukraine for signature. After signing and official publication, the law enters into force, thereby providing the legal basis for financing all state programs and obligations in the new budget period.

What is noteworthy?

Members of Parliament adopted the 2026 budget without even a minimal increase in military pay. At the same time, quietly and without public discussion, MPs allocated funds to triple the monthly allowance for deputies’ operational expenses to UAH 199,000 per month.

This is in addition to MPs’ salaries, which will also increase next year and will average about UAH 50,000 net per month after taxes.

The author of this controversial initiative is unknown, as parliamentarians refuse to comment publicly on this unpopular issue, and it was not discussed during the plenary debate.

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