Ukraine govt adds UAH 27.8 bln in revenue, UAH 33.6 bln in expenditures to 2026 draft budget

MOSCOW. Nov 6 (Interfax) - The Ukrainian government has drafted the 2026 state budget for the second reading in the Verkhovna Rada, with revenues to rise by UAH 27.8 billion and expenditures to increase by UAH 33.6 billion, Ukrainian Prime Minister Yulia Svyrydenko was quoted as saying by the government press service in Ukrainian media following a government meeting on Wednesday.

Svyrydenko said that revenues were increased by raising the corporate income tax rate for banks from 25% to 50%, corresponding bill the Verkhovna Rada recently passed in its first reading.

Regarding additional expenses, UAH 18.9 billion should top up the reserve fund to UAH 54.5 billion, and UAH 6.6 billion should go toward a gradual 50% increase in salaries for not only school teachers but also university and vocational college instructors over the course of the year, bringing these expenses to UAH 190.5 billion overall, Svyrydenko said.

According to media reports, the Finance Ministry clarified on its website that state budget revenues were set at around UAH 2.854 trillion, expenditures were set at about UAH 4.837 trillion, and the deficit increased by UAH 5.8 billion to UAH 1.9 trillion rubles, an increase of 18.4% of GDP, following the revision and excluding inter-budget transfers.

The Finance Ministry estimates that raising the bank profit tax rate from 25% to 50% would generate an additional UAH 30 billion, UAH 4.3 billion of which has been previously allocated to local budgets and to a special state budget fund.

An additional UAH 1.3 billion is also expected from increasing dividends at PJSC Ukrainian Financial Housing Company, which administers the E-House program. However, these funds will be retained by the company for state housing policy, which will thus total UAH 46.5 billion in funding next year, the Finance Ministry said.

Meantime, a technical adjustment has been rendered to the World Bank grant proceeds under the RELINC project. Namely, an UAH 5 billion grant has been replaced by a preferential loan guaranteed by the European Commission under the Ukraine Facility mechanism, the ministry said.

Regarding additional expenses, another UAH 4.3 billion is allocated for the continuation of the passenger car renovation program, and the total cost of funding public investment projects next year will total UAH 107.2 billion.

A total of UAH 1.4 billion previously contributed to the authorized charter capital of the Financing of Infrastructure Projects state enterprise and unused is also envisaged for return to the state budget.

The Finance Ministry said that the next stage in the state budget adoption process is the second reading scheduled for November 20, 2025.

As reported, the 2025 state budget was approved with revenues of UAH 2.327 trillion, including UAH 2.133 trillion in the general fund, excluding grants and international aid, and expenditures of UAH 3.929 trillion, including UAH 3.591 trillion in the general fund.

Meantime, the Verkhovna Rada raised this year's budget expenditures by UAH 400.5 billion and revenues by UAH 147.5 billion at the end of July at the government's suggestion. In October, expenditures were increased by another UAH 324.7 billion for the national security and defense sector, while revenues were increased by UAH 20 billion.

Consequently, the 2025 state budget revenues, excluding grants, are currently planned at UAH 2.483 trillion, while expenditures are UAH 4.338 trillion, including the general fund at UAH 2.279 trillion and UAH 3.99 trillion, respectively.