Ukraine to prioritize defense in state budget for 2026–2028

Financing national security and defense will remain the top priority in Ukraine’s state budget for 2026–2028, according to Presidential Decree No. 433/2025, which outlines the National Security and Defense Council’s (NSDC) proposals for the upcoming budget declaration.

The Cabinet of Ministers has been instructed to allow for flexibility in defense spending, enabling adjustments in line with changes in the military and political situation during the drafting of state budgets over the next three years.

The NSDC emphasized the need to prioritize funding for the development and procurement of advanced weapon systems (including missile systems, drones, air defense, artillery, and ammunition); strengthening the capabilities of the security and defense forces; enhancing air defense and critical infrastructure protection; boosting cybersecurity and intelligence capacities.

Additional government directives include:

• maintaining adequate personnel levels and ensuring social support for security forces;
• increasing salaries for military and law enforcement personnel where feasible;
• restoring the state’s debt sustainability;
• attracting additional sources of military and technical assistance;
• providing one-time financial aid to the families of fallen service members;
• replenishing strategic reserves of defense material and equipment;
• supporting the domestic defense industry.

Although the budget declaration for 2026–2028 was legally due by June 1, the deadline has been missed for the second consecutive year.

The delay is attributed to ongoing cooperation with the IMF mission in Kyiv and the need to prepare the budget under two scenarios: a baseline scenario involving deficit reduction, and an alternative scenario assuming continued hostilities in 2026.