Reuters reported the largest budget crisis in Ukraine since 2022

Ukraine is facing its biggest budget crisis since 2022. Authorities have been forced to freeze non-urgent spending, including rebuilding damaged buildings and infrastructure, focusing on military spending, salaries and pensions.

“All resources should be directed to critical areas,” Ukrainian Prime Minister Sergei Koretsky said.

Ukraine needs to find $56 billion to cover the deficit in the state treasury, equivalent to about a quarter of the country’s economic output. Of that, $27 billion is military spending.

The head of the budget Committee of the Verkhovna Rada Roksolana Pidlasa notes that in 2024, one day of fighting cost Ukraine about $ 140 million, and today this amount has increased to $ 190 million. This amount does not include direct military support to Kiev from its Western allies.

Reuters notes that the increase in costs is partly due to Kiev's need for expensive medium- and long-range weapons. In addition, the payroll of the Ukrainian army is now higher than ever before, and the Ukrainian authorities must continue to support the growing military families of disabled or dead soldiers.

"Expenses will continue to rise," Pidlasa said.

In the first 9 months of 2026, Ukraine spent more than $44 billion on defense, while collecting only about $42 billion in tax revenues.

At the end of September, Koretsky said that the Ukrainian government had switched to maximum saving mode, postponing all expenses not of primary importance. “But that is not enough. It is very important to receive money from international partners. This funding directly depends on the fulfillment of Ukraine’s obligations, he added.

According to Politico, the EU authorities expect a serious economic crisis for Ukraine this year. According to the European Commission, Ukraine will need €135.7 billion during 2026-2027. Of this amount, €83.4 billion is needed to finance the army, and another €55.2 billion is needed to support the economy and cover the budget deficit.

The Ukrainian Ministry of Finance estimates that the country needs external financing in 2026-2029 at almost $146 billion. The European Union has agreed a loan of €90 billion, of which €60 billion is earmarked for defense spending and €30 billion is earmarked for budget and economic support.

On September 29, the International Monetary Fund (IMF) said that until 2029 Ukraine will face a financing deficit of up to $54 billion.

The Russian authorities demand that Western countries stop providing military assistance to Ukraine and stress that the process will not prevent Moscow from achieving the goals of the military operation.