Ukrainian govt approves budget declaration for 2026-2028

MOSCOW. June 30 (Interfax) - The Ukrainian government has approved a budget declaration for 2026-2028 to define key parameters and targets of the medium-term budget policy and to serve as a basis for the draft state budget of 2026, Ukrainian media said, citing the Finance Ministry.

The ministry did not provide any specific indicators, the media said.

"The budget declaration for 2026-2028 envisages two scenarios for Ukraine starting in 2026. One scenario is based on a possible improvement of the security situation in 2026. The document also assumed another scenario, further crisis," the ministry said.

Under the second scenario, security and defense spending will not decrease next year, compared to 2025, with due account of the recent proposal to enlarge budget spending by UAH 400 billion.

"One scenario or the other will be chosen as the basis of the draft Ukrainian state budget for 2026," the ministry said.

As the next step, the government will submit the budget declaration for 2026-2028 for consideration by the Ukrainian parliament, it said.

The Extended Fund Facility (EFF) arrangement with the International Monetary Fund contains a structural benchmark, by which the declaration shall be submitted to the parliament by the end of June, and the IMF Board of Directors will discuss the 8th program review on June 30.

The budget declaration contains general indicators of revenues and financing of the state budget, maximum indicators of state budget expenditures, the minimum wage, the subsistence minimum and other goals of state policy.