Ukraine's State Budget Has Fallen Short by More Than 73 Billion Hryvnia Over 10 Months — Pidlasa

From January through October 2026, Ukraine’s state budget fell short of its projected revenue by 73.7 billion hryvnia in taxes and fees. Among the reasons for this shortfall are intensified Russian attacks on businesses and the blockade of seaports. This was reported by Member of Parliament Roksolana Pidlasa.

“According to preliminary data, over the first 10 months of 2026, 2 trillion hryvnias were credited to the general fund of the state budget (EXCLUDING international grants). Revenue fell short of the target for the reporting period by 73.7 billion hryvnias, more than three-quarters of which (56.2 billion hryvnias) were not received specifically in August–October 2026. "The main reasons are the intensification of Russian attacks on businesses and the blockade of seaports," the statement said.

Podlasa noted that the sources of revenue for the general budget fund are traditional: import VAT—548.7 billion UAH; personal income tax—287 billion UAH (including the military levy for the first six months of 2026; starting in July, this levy is credited to a special fund and earmarked for the monetary allowance of the Armed Forces of Ukraine); VAT on goods produced in Ukraine—280.2 billion hryvnias (already net of refunded VAT); income tax—278.4 billion hryvnias; funds from the National Bank of Ukraine (NBU)—146.1 billion UAH; import excise tax—152.8 billion UAH; domestic excise tax—100.8 billion UAH; dividends and a portion of the net profit (income) of business entities—58.9 billion UAH; import duties—53.8 billion UAH; rent payments—49.2 billion UAH.

She also noted that revenue targets were exceeded, primarily due to: corporate income tax (+32.9 billion UAH, or +13.4%), personal income tax (+5.9 billion UAH, +2.1%), import excise tax (+4.7 billion UAH, or +3.2%), and rent payments (+1.9 billion UAH, or +4%).

At the same time, the targets for the main revenue-generating taxes (and fees) were not met, specifically: import VAT—by 47.5 billion UAH (or 8%), VAT on goods produced in Ukraine—by 44.7 billion UAH (or 13.7%), domestic excise tax—by 29.8 billion UAH (or 22.8%), dividends and a portion of the net profit (income) of business entities—by 9 billion UAH (or 13.3%); and import duties—by 1 billion UAH (or 1.9%). These are only the most significant shortfalls.

“Overall, the largest shortfall in taxes and fees amounts to 132 billion UAH (against the 10-month plan); this shortfall is partially offset by revenue exceeding the plan for corporate income tax, personal income tax, and others,” Pidlasa emphasized.

From January through October of this year, more than $25 billion in international aid was used to cover expenditures under the general fund of the state budget.

The Chair of the Verkhovna Rada Committee on Budgetary Affairs reported that 387.9 billion hryvnias from the placement of domestic government bonds were allocated to finance the general fund of the state budget over the first 10 months of 2026. The increase for October alone was nearly 26 billion hryvnias.

The largest categories of budget expenditures for January–October 2026 were:

• defense—2.2 trillion UAH, or 60.3% of all general fund expenditures,
• debt repayment (domestic and foreign)—487.4 billion hryvnia,
• social protection and support for veterans (excluding public investment projects)—380.5 billion UAH,
• debt service (external and internal) — 305.8 billion UAH,
• the medical guarantees program and health screenings—161 billion UAH,
• teachers’ salaries in schools (education subsidy and additional payments to teachers) — 130.4 billion UAH,
• basic and additional subsidies—52.8 billion UAH.

"Without receiving the second tranche of macro-financial assistance from the EU (we’re waiting! All conditions have been met) and a new tranche from the Ukraine Facility ($8 billion), it does not seem possible to ensure the budget is funded by its own revenues by the end of the year; without donor funds, there is a risk that both military and social expenditures will not be carried out in the planned amounts,” Pidlasa emphasized.

Roksolana Pidlasa, chair of the Verkhovna Rada’s Budget Committee, reported this on Facebook.

Russian attacks on Ukrainian businesses have cost the budget 32 billion hryvnia.

Ukraine expects to receive the next tranche of financial budget support from the European Union in the coming days.