In half a year, the state spent UAH 2.23 trillion, most of it on the security and defense sector
In the first half of 2026, expenditures of the general fund of the state budget of Ukraine reached UAH 2.23 trillion. This is 18.9% or UAH 354.1 billion more than in the same period last year. Only in June, 431.5 billion UAH were financed from the budget.
The increase in expenditures is primarily related to the continuation of funding for defense, social programs, and support for the work of state institutions in conditions of full-scale war. The data were released by the State Treasury Service and the Ministry of Finance.
Defense remains the main item of expenditure
The largest part of budget funds, as before, was directed to the security and defense sector. In six months, UAH 1.4 trillion was spent on these needs, which is 63% of all expenditures of the general fund. Only in June, financing of the defense sector amounted to UAH 263.5 billion.
Such amounts of expenditure cover the provision of the Armed Forces, the purchase of weapons, ammunition, military equipment, protective equipment, fuel, food, as well as the financing of other power structures.
Expenditures for salaries, social support and assistance to communities have increased
The second item in terms of volume remains payments to employees of the budget sector. The state allocated 851 billion hryvnias for wages together with charges, which is almost 16% more than last year. This category covers the salaries of military personnel, doctors, teachers, civil servants and other public sector employees.
UAH 352.1 billion was spent on social security, including pensions, housing subsidies, state aid and scholarships. Compared to the first half of 2025, this amount has increased by more than UAH 38 billion.
At the same time, financing of subsidies and transfers to enterprises and state institutions increased significantly. Almost 385 billion hryvnias were allocated to these goals in six months — 61% more than a year earlier. A significant part of these funds is used for procurement of defense products, support of state programs and operation of strategic institutions.
Significant funds were also directed to debt and local budgets
In addition to defense and social spending, the state continues to finance the servicing of the national debt. For six months, 184.5 billion hryvnias were spent on paying interest and fulfilling debt obligations.
Another UAH 142.7 billion was received by local budgets in the form of transfers. Compared to last year, the volume of such support has increased by almost 40%, which allows communities to finance education, health care, social protection and other local programs.
What does this mean
The structure of public expenditures demonstrates that the priority of budget policy remains defense financing. At the same time, the government is increasing spending on social benefits, public sector salaries, and support for local communities to keep the economy and state institutions functioning during the war.
For business, this means further dominance of public procurement, primarily in the defense and infrastructure sectors. For citizens, the preservation of funding of pensions, subsidies and the budget sphere, although the high level of expenditures will continue to require significant tax revenues and international financial assistance.
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