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New military payouts and defence spending: Government proposes changes to the 2026 State Budget

May 8, 2026, 19:20

Nearly UAH 175 billion has been earmarked to boost payouts for military personnel.

An additional UAH 1.56 trillion is proposed for broader defence needs, including personnel allowances.

EU financial support

This expansion in spending has been made possible by the approval of a €90 billion EU loan package spanning 2026–2027.

Ukraine is set to receive €45 billion in support this year, of which €31.8 billion will go directly to defence and security, and €13.2 billion will cover the budget deficit. The first tranche is expected in June.

Overall, government revenues will rise by more than UAH 2.2 trillion, driven primarily by international support and additional inflows under the Ukraine Facility.

Where the additional spending will go

The extra UAH 1.56 trillion allocated to the security and defence sector will be distributed as follows:

  • UAH 174.3 billion for personnel allowances
  • UAH 1.37 trillion for the development of arms and military equipment
  • UAH 14.6 billion reserved for the security and defence sector

Further funds are separately earmarked to foster the Ukrainian defence industry, modernise equipment, and ramp up domestic weapons production.

The Ministry of Defence, together with the General Staff and the Ministry of Finance, is working to explore every single option to equip the Armed Forces with proper resources and capabilities.