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Ukraine Submits 2026 Budget to Parliament With Higher Bank Tax and Added Spending

Officials seek quick passage to preserve financing stability, with domestic receipts directed to defense plus partner support for social needs.

Overview

  • The Cabinet delivered the draft 2026 state budget to the Verkhovna Rada for second reading, and the speaker said lawmakers will take it up shortly.
  • Projected revenues rise by 27.8 billion UAH, driven in part by lifting the bank profit tax rate from 25% to 50%.
  • Planned expenditures increase by 33.6 billion UAH, including 18.9 billion UAH for the reserve fund.
  • A 6.6 billion UAH allocation funds a phased 50% salary increase during 2026 for school teachers, university lecturers, and professional college instructors.
  • The government says all domestic revenues are directed to the Defense Forces and it is engaging the IMF, EU, and G7 to help cover social spending.