The Verkhovna Rada of Ukraine has taken a decisive step toward bolstering national security by passing bill No. 15224 in its first reading, amending the 2026 state budget. According to the Ministry of Finance of Ukraine, the bill secured 240 votes, easily surpassing the required minimum of 226. These legislative adjustments are heavily driven by the anticipated inflow of substantial financial support from the European Union, aimed primarily at strengthening the nation’s defense capabilities and streamlining resource allocation.
The proposed amendments will increase the state budget revenues for 2026 by an impressive 2.291 trillion UAH, bringing the total revenue projection to nearly 5.196 trillion UAH. This unprecedented financial boost relies on three primary sources. The largest share comes from EU financial support under the enhanced cooperation mechanism, contributing 2.221 trillion UAH. Additionally, 47.7 billion UAH is expected from the implementation of the Ukraine Facility initiative, and another 22.6 billion UAH will be generated from personal income tax (PIT) increases, directly linked to higher salaries for military personnel.
Crucially, this substantial external assistance, mostly structured as grants, allows Ukraine to reduce its state budget deficit by 651.5 billion UAH. This represents a significant drop in the deficit-to-GDP ratio from 18.5% to 12.1%.
At the core of the bill is a massive expansion of defense funding. Total security and defense spending will increase by 1.56 trillion UAH, reaching an overall allocation of 4.367 trillion UAH. The additional funding is distributed across three strategic pillars:
- Military salaries: An increase of 174.3 billion UAH, bringing the total allocation to 1.454 trillion UAH.
- Weapons and equipment procurement: An additional 1.371 trillion UAH, targeting the acquisition, modernization, and maintenance of defense systems.
- Strategic reserve: An extra 14.6 billion UAH set aside for unforeseen needs within the security and defense sector.
The bill also introduces two systemic innovations. Starting July 1, 2026, military tax revenues will be channeled directly into a dedicated special fund for the Armed Forces of Ukraine. Furthermore, future export duties on military and dual-use goods will be reinvested into domestic defense production and tech modernization. Additionally, 40 billion UAH has been allocated to regional resilience plans, with another 40 billion UAH added to the state reserve fund to address emergencies caused by ongoing aggression.
Currently, the parliamentary budget committee is finalizing the draft for its second reading under an expedited procedure, paving the way for a more resilient economic and military structure in 2026.