The Ukrainian government has developed a plan to close part of the critical deficit in the country's defense budget, which currently stands at 27 billion dollars. Prime Minister Serhiy Koretskyi confirmed during a press briefing on September 30, 2026, that approximately 7 billion dollars of this amount will be covered through strict internal austerity, administrative cost optimization, and reallocation of funds across the state budget.
Defense Spending Structure and Needs
According to the head of government, total defense expenditures for 2026 are estimated at 155 billion dollars. This figure includes both direct budget financing and non-budgetary material-technical assistance from international partners. The latter covers supplies of high-tech weaponry, including PAC-2/PAC-3 missiles, Patriot air defense components, and aircraft, allowing the country to maintain combat readiness without direct cash expenditures on procurement.
Contradictory Data
There are discrepancies in funding estimates for the upcoming period. Prime Minister Koretskyi focuses on closing the current year's deficit to support military payments, while Finance Minister Serhiy Marchenko highlights 2027. According to Finance Ministry estimates, external funding for 2027 should reach 52.6 billion dollars, but currently, only 20 billion dollars is confirmed, raising questions about covering long-term production needs.
2027 Outlook
The remaining 20 billion dollars of this year's deficit remain the subject of active negotiations with Western allies. Koretskyi emphasized that Ukraine's ability to conduct active combat operations in the first quarter of 2027 directly depends on the success of these negotiations. The priority remains financing the production of long-range strike capabilities, which is critical for the country's defense strategy.
The government strategy involves not only seeking new credit lines but also delaying secondary state expenses. Timely payments to defense personnel and social support for military families remain the priority, which the Prime Minister considers the foundation for ensuring national security amidst a protracted conflict.
