Kyiv: Ukraine’s parliament has approved a sweeping 2026 state budget that places national defense at the heart of government spending, dedicating nearly one-third of the country’s entire economic output to military needs as the war with Russia shows no sign of easing. The decision, made during a tense session in the Verkhovna Rada, underscores Kyiv’s determination to sustain its defense capabilities while grappling with mounting internal and economic challenges.
The newly adopted budget directs 27.2% of Ukraine’s GDP to defense-related activities, including weapons purchases, expansion of domestic arms production, troop salaries, and battlefield logistics. This intense focus reflects the government’s belief that strengthening the military is vital for national survival as Russian forces continue targeting key infrastructure and frontline regions.
Lawmakers reported a charged atmosphere during the vote, with some opposition MPs accusing the government of neglecting social obligations and calling for better pay and welfare support for soldiers’ families. Cries of “Shame!” were heard from several benches before the budget passed with 257 votes a comfortable majority but one that highlighted deep political divisions at a critical moment.
President Volodymyr Zelenskiy welcomed the passage of the budget, calling it an essential step to ensure Ukraine’s financial and military stability in 2026. He said the spending plan sends a strong message of resilience and readiness, describing defense preparedness, social protection, and reconstruction of war-damaged regions as the key pillars of the government’s strategy for the coming year.
Despite the focus on defense, the budget includes provisions for rebuilding schools, hospitals, and civilian infrastructure damaged by missile strikes, though analysts say these resources remain limited due to wartime constraints and an unprecedented fiscal gap.
One of the most pressing challenges revealed in the budget is a massive projected 18.5% GDP deficit, which Ukraine cannot close without significant assistance from foreign partners. The finance ministry estimates that the country will require more than US$45 billion in external support in 2026 to keep essential services functioning and maintain defense operations.
The budget forecasts 2.92 trillion hryvnias in revenue, boosted by stronger taxation and donor contributions, but expenditure is expected to soar to 4.84 trillion hryvnias, driven largely by defense and security needs. Nearly 60% of total spending will be channeled into defense, intelligence, veterans’ services, and military procurement.
The budget’s passage came amid a widening political scandal over corruption in Ukraine’s energy sector, which has shaken confidence in state institutions and triggered calls for greater transparency and accountability within the government.
Analysts warn that internal instability poses risks to Ukraine’s wartime governance, but they also note that the successful approval of the budget demonstrates Parliament’s capacity to act decisively despite controversy. For international partners observing Kyiv’s fiscal responsibility, the vote may serve as a reassuring indicator of institutional resilience.
The 2026 budget marks one of Ukraine’s most defense-heavy financial plans since independence, signaling expectations of a prolonged and intense conflict. With domestic defense production expanding and international military alliances strengthening, Kyiv appears set on reinforcing its battlefield capabilities while appealing for sustained global financial support.
As Ukraine enters another year of war, the government’s fiscal choices highlight both the cost of resistance and the strategic priority of securing long-term military readiness in the face of ongoing aggression.