Analysts pointed out the shortcomings of the 2026 budget: real defense spending is being reduced

Ten think tanks appealed to the Verkhovna Rada to criticize the draft state budget for 2026, pointing out the inconsistency with the declared priorities and inefficient allocation of funds. The text of the appeal is published on the website of the Economic Expert Platform.

Experts say the main problem is the actual reduction in defense funding. Security spending is planned at UAH 1,923.6 billion, which is only 0.6% more than in 2025. Taking into account inflation, this means a real drop in funding in the context of the ongoing full-scale war.

"Such a reduction will require additional funding, which will require amendments to the state budget," reads the statement signed by CASE Ukraine, the Institute for Social and Economic Transformation, the Institute for Economic Leadership, Advanter Group, etc .

Analysts propose to review the effectiveness of spending on secondary areas (in particular, increased funding for the State Bureau of Investigation, National Cashback, etc.) and transfer it to defense needs.

Also, the draft budget does not provide the necessary funding for the reboot of the Bureau of Economic Security and the reform of the State Customs Service.

At the same time, experts point to inefficient spending in the draft budget: some sections are designed for the pre-war population, which has significantly decreased. Analysts suggest cutting spending on public services related to population size.

According to think tanks, the increase in salaries in the education sector, for which an additional UAH 53.8 billion is allocated, should be coordinated with strategic decisions on school optimization and verification of expenditures.

The draft budget envisages attracting $45.5 billion in external financing, a record amount that poses significant risks to macroeconomic stability in case of problems with fundraising.

"In view of this, the government should actively work with international donors to find mutually acceptable financing mechanisms and conditions, fulfill the obligations stipulated in the loan agreements and use the funds received as efficiently as possible. At the same time, it is important to look for internal reserves to reduce the state budget deficit, primarily by reducing inefficient and secondary budget expenditures," the statement reads.

• Revenues of the general fund of the budget for 2026 are tentatively planned at UAH 2.83 trillion (+18.8% compared to the current budget), expenditures – over UAH 4.8 trillion.
• The budget deficit is projected at up to 18.4% of GDP, which is 3.9 percentage points less than in 2025.
• External financing needs – UAH 2.08 trillion.