Ukraine's 2026 Budget Proposal: New Challenges Ahead
The draft budget for Ukraine in 2026 will be shaped based on an alternative macro scenario that anticipates the continuation of war for the entire year.
This was announced by Ukraine's Minister of Finance, Serhiy Marchenko, during a presentation of the government's action program.
«Our baseline macroeconomic scenario assumes the end of the conflict in 2025. The alternative scenario foresees the war continuing into 2026. At this point, we must be pragmatic. Therefore, we plan to extend military actions throughout the 26th year,» Marchenko noted.
Consequently, there is a need for external financing amounting to $45 billion, the minister emphasized. These funds will not only cover the deficit but will also service debts.
He pointed out that this need is currently not fully met, but negotiations are already underway with key partners - the G7 countries and the European Union.
«I believe that together with our key stakeholders, we will find an acceptable way to address these needs,» the minister assured.
Regarding fiscal policy, Marchenko stressed that the primary goal is to maintain the share of budget revenues in GDP.
«The key task is to preserve the share of revenues in GDP. We expect to achieve this through measures to de-shadow the economy and restructuring fiscal authorities. This is the focus of our discussions with the International Monetary Fund,» he added.
