Budget 2026: 100% of domestic revenues directed to national defence

On 3 December, the Verkhovna Rada of Ukraine adopted the Law of Ukraine “On the State Budget for 2026”. The document reaffirms the state’s top priority – defence and security of the country. All domestic revenues and borrowings raised through Ukraine’s own efforts in 2026 will be channelled exclusively towards strengthening defence capability: military pay, procurement of weapons, maintaining combat readiness, logistics, and building strategic reserves. This accounts for nearly 60% of total budget expenditure.

Total expenditure on the defence and security sector in 2026 amounts to UAH 2.8071 trillion, or 27.2% of GDP. This is the resource that enables the state to continue resisting and to bolster its armed forces.

Within the general fund, UAH 2.4954 trillion is allocated, broken down as follows:

• UAH 1.2729 trillion – monetary allowances for service members and salaries of security and defence sector personnel;
• UAH 709.8 billion (+UAH 1 billion added before the second reading) – procurement of weapons and military (special) equipment, including drones, ammunition, and hardware;
• UAH 373.7 billion – other defence-related purposes;
• UAH 139 billion – contingency reserve (for rapid response to emergency challenges).

The budget also provides UAH 30 billion in state guarantees for enterprises fulfilling critically important defence contracts and expanding the defence industry.

The special fund earmarks an additional UAH 281.7 billion for defence programmes and investment in arms production.

A separate priority is the development of the military-industrial complex: UAH 44.4 billion will be allocated to establishing new production facilities and expanding existing ones for the manufacture of ammunition, missiles, air-defence systems, and other defence products. This will strengthen domestic production capacity and reduce reliance on imports.