Ukraine’s parliament reviews the 2026 budget, highlighting teacher pay raises and local tax retention, but serious gaps remain: 300 billion UAH for the military, 180 billion UAH for soldier salaries, and a $19 billion deficit.
The Verkhovna Rada has begun reviewing Ukraine’s 2026 state budget in the second reading, sparking debate over fiscal priorities and military funding.
According to Danilo Hetmantsev, head of the parliamentary Committee on Finance, Tax, and Customs Policy, key amendments include a salary increase for teachers up to 26,000 UAH without raising their workload. Additionally, the share of personal income tax (PIT) that remains in local budgets has been set at 64% of collected revenue, ensuring that communities retain these funds.
Despite these social provisions, experts and officials point to serious fiscal shortfalls. The 2026 budget reportedly leaves a 300 billion UAH gap for the armed forces and a 180 billion UAH shortfall for military salaries, exceeding even this year’s underfunding. Furthermore, the overall budget deficit is projected at $19 billion, with no clear plan yet for how it will be covered.
The discussion comes at a critical time as Ukraine continues to face security challenges while simultaneously striving to maintain social and economic stability. Analysts warn that these financial gaps could constrain military readiness and raise concerns about the sustainability of public services.
The parliamentary review in the second reading will determine how the government addresses these gaps, balancing social spending with defense needs and fiscal responsibility. With debates ongoing, the final budget will reveal how Ukraine plans to navigate its twin challenges of war and economic pressures in 2026.
Tags: education Fiscal gap Local governments Military funding Parliament session Social spending State Budget 2026 Ukraine budget
