In the Draft State Budget for 2026, funding for the security and defence sectors remains a top priority. At the same time, the Government is providing substantial support for local budgets, recognising that the capacity of communities is crucial for the resilience of the country.

During a meeting of the Congress of Local and Regional Authorities of Ukraine, Serhii Marchenko, Minister of Finance, emphasised that financial resources must be allocated as balancedly and effectively as possible, bearing in mind the challenges posed by the war.

The main areas of focus for community support in the Draft State Budget for 2026 are as follows:

• UAH 36.5 billion — additional subsidy to balance local budgets;
• UAH 29.5 billion — basic subsidy to be received by over a thousand communities and 18 regional budgets;
• UAH 15 billion — compensation for the difference in heat supply tariffs;
• UAH 120 billion — education sector (subsidy, arrangement of safe conditions in schools, construction and arrangement of bomb shelters, purchase of school buses);
• UAH 15 billion — provision of housing for internally displaced persons.

The horizontal alignment for 2026 has been calculated in accordance with the Budget Declaration for 2026–2028, taking into account population data as of 1 September 2025, including internally displaced persons (IDPs).

The final amounts of interbudgetary transfers will be determined after the adoption of the Law ‘On the State Budget of Ukraine for 2026’ — by 1 December.

Thus, the budget for the coming year not only prioritises support for the security sector, but also allocates significant resources to meeting the basic needs of communities, covering all aspects from energy and education to social protection and housing for IDPs.