The Verkhovna Rada of Ukraine on Wednesday approved the 2026 draft state budget in its first reading – the bill’s first review when it’s passed from Ukraine’s government to lawmakers.
The lawmakers will then propose their amendments and prepare them for the next stage of approval and final adoption. The second reading is scheduled for Nov. 20, with the final vote due on Dec. 1.
After the government submitted the budget to the Rada, Ukraine’s lawmakers submitted 3,339 amendments worth over Hr. 7 trillion ($171 billion) – 1.5 times the size of the entire budget, according to the parliament’s live broadcast.
However, most proposed amendments have been rejected, including those aimed to redirect Hr.865.5 million ($21.1 million) from political party financing to the Armed Forces, rebuild Rivne’s Avangard Stadium, or expand education and health-sector subsidies.
The approved amendments cover defense, education – particularly a new system of higher salaries for teachers – as well as healthcare, social policy and business support.
Key provisions in the current version include higher salaries for teachers and university lecturers, Hr.2 billion ($48.8 million) for demining, Hr.1 billion ($24.4 million) for military-risk insurance, and Hr.500 million ($12.2 million) for university relocation from combat zones.
Lawmakers also adopted an amendment extending the tax exemption for electric-car imports until 2027 (248 votes). However, lawmaker Danylo Hetmanstev of the Sluha Narodu party wrote in his Telegram update that the parliament did not extend the tax benefit for electric-car imports.
The tax exemption for electric car imports has become a contentious issue among independent experts and policymakers, as Ukraine tries to balance record defense spending against social welfare needs. Hetmanstev described the measure as a result of “lobbying efforts from importers.”
The Cabinet is expected to finalize the measure in November.
Ukraine’s war-hit economy is heading into another year of uncertainty, with no clear plan to significantly reduce the budget deficit as Russia’s invasion drags on and hoped-for ceasefire talks failed to materialize.
Many proposed amendments failed to pass as the parliamentary Budget Committee moves to narrow overall spending while prioritizing higher allocations for defense, education and demining amid the war-strained economy.
“[Lawmakers] usually don’t specify where to find the funds for their proposals,” the head of the committee, Roksolana Pidlasa, previously wrote in her Facebook update.
“Those who do most often cite the reserve fund or debt-service expenditures.”