Ukraine’s 2026 state budget draft allocates a record 955 billion hryvnias ($23 bn) for weapons procurement and production, representing one-third of all defense spending, according to Roksolana Pidlasa, head of the parliamentary Budget Committee.
The “Servant of the People” MP announced on Facebook that total defense expenditures will reach 2.8 trillion hryvnias in 2026, marking the fifth wartime budget since Russia’s full-scale invasion began.
“More than half of the expenditures – about 45% – is the planned monetary provision for military personnel. A record 955 billion hryvnias (one third of all defense funds) is planned to be directed to the procurement and production of weapons,” Pidlasa wrote.
Ukraine finances its defense spending through domestic revenues and borrowings, as international partners do not allow their aid to be used for weapons purchases, with Britain being the sole exception.
“At the same time, all non-military expenditures are in the sphere of the state budget deficit. The need for international financing is $45.5 billion, of which $18 billion is an uncovered need,” the committee head said.
The borrowing requirement stems from Ukraine dedicating approximately 60% of its budget to defense needs.
“We will be giving every hryvnia earned and borrowed in Ukraine to national security and defense needs next year, because currently international partners do not allow us to use the money they give to the budget for weapons purchases and monetary provision for military personnel,” Pidlasa explained.
This financial strain continues to increase the national debt burden. “As a result, the state debt continues to grow and by the end of next year may reach 101.6% of forecast GDP (compared to 43.3% in 2021). This situation will persist until the end of active hostilities, while we will be directing about 60% of our budget to defense,” according to Pidlasa.
The MP called on fellow parliamentarians to exercise restraint in their budget proposals to avoid further increasing the deficit during the budget review process.