Ukraine’s Cabinet approved the 2026–2028 Budget Declaration, outlining fiscal targets, wage adjustments, and EU-aligned reforms.
The Ukrainian Council of Ministers approved the Budget Declaration for 2026–2028 through Decree No. 774 on 27 June 2025.
This document outlines the core principles of medium-term budget policy, focusing on fiscal stability.
Key provisions of the 2026–2028 budget declaration:
- Defence and Security Planning:
- Two scenarios considered:
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- Improvement in the security situation beginning in 2026
- Continuation of full-scale Russian aggression
- In both scenarios, defence and security spending will remain a top priority and at least equal to 2025 levels
- The President has approved the National Security and Defence Council’s funding proposals for 2026–2028
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- Macroeconomic Indicators:
- Inflation forecast:
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- 9.7% in 2026
- 7.1% in 2027
- 5.6% in 2028
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- Unemployment: Average ~13%
- Exchange rate (UAH/USD):
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- 44.7 in 2026
- 45.3 in 2027
- 45.8 in 2028
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- Tax Policy:
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- Corporate income tax: 18% (25% for banks and financial institutions)
- VAT: 20%, with reduced rates of 7% and 14%
- Personal income tax: 18%
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- Planned Tax Reforms:
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- Expansion of tax reporting for digital platforms
- Introduction of electronic audits
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- Harmonisation of legislation with European Union standards
- Preparation and Coordination:
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- Drafted jointly with key spending authorities
- Developed in cooperation with the International Monetary Fund
- Based on Ukraine’s strategic development goals and European integration priorities
