Budget declaration provides for reduction in deficit to 9.9% of GDP in 2026, 5.2% of GDP in 2027, 3.8% of GDP in 2028
The 2026-2028 budget declaration, approved by the government, provides for a reduction in the state budget deficit of Ukraine from the planned 19.4% of GDP this year to 9.9% of GDP in 2026, 5.2% of GDP in 2027 and 3.8% of GDP in 2028.
"In 2026, partial financing of the state budget is planned through the receipt of state borrowings in 2025 in excess of the amounts determined by the law on the 2025 state budget, which will make it possible to reduce the burden on the domestic market of state securities," the declaration, approved by the Cabinet of Ministers Resolution No. 774 of June 27 and published on the government portal, reads.
According to it, in absolute terms, this is about reducing the deficit from UAH 1.64 trillion this year to UAH 1.03 trillion next year, UAH 620 billion in 2027 and UAH 510 billion in 2028.
It is noted that financing of the state budget through state borrowings is planned taking into account the receipt of financial assistance from international partners and the capacity and available liquidity of the domestic capital market.
According to the declaration, privatization proceeds of UAH 2 billion are planned annually for all three years.
"To ensure debt sustainability, it is planned to reduce the ratio of total public debt to state-guaranteed debt by the end of 2028 to a level not exceeding 100% of GDP," the document also reads.
It is noted that in the event of the extended war, the size of the state budget deficit may be increased in consultations with the IMF and other international partners, on whose external financing Ukraine relies.