The Ukrainian parliament has approved changes to the state budget for 2026 that pave the way for a record increase in defense and security spending. The decision comes at a time when Kiev is stepping up its strikes on targets deep inside Russian territory and reporting limited successes in counterattacks on the front line, BTA reports.
The adopted amendments provide for additional funding of 1.56 trillion hryvnias, or about $34.7 billion, for defense and security needs. The bill was supported by 242 MPs with a minimum of 226 votes required for adoption.
The increase in spending became possible after the granting of a loan from the European Union worth 90 billion euros. The funds are secured through a mechanism related to the unblocking of frozen Russian assets.
The loan is expected to provide significant support to the Ukrainian financial system, with the country set to receive the first tranche of 3.2 billion euros this month. However, Kiev continues to rely on international financial assistance to cover the budget deficit and war-related costs.
After the update, total defense spending this year is expected to reach a record 4.37 trillion hryvnias, or approximately $97.2 billion. For comparison, initial forecasts were for about $64 billion, and last year military spending amounted to $61.4 billion.
Meanwhile, Ukrainian lawmakers also passed a law that introduces a tax on income earned through online platforms such as “Uber“ and “Bolt“. The measure is part of the country's commitments to the International Monetary Fund, which is pushing for a broadening of the tax base to support the war-torn economy.
Some of the remaining conditions for receiving the next tranche from the IMF, including proposals to tax shipments and small businesses, continue to cause difficulties in their discussion in the Ukrainian parliament.