On September 28, 2026, Prime Minister of Ukraine Serhiy Koretsky announced a decision to limit funding for non-priority expenditures. This comes in light of a difficult situation with state finances, particularly due to delays in receiving international aid.
Reasons for Funding Limitations
Koretsky stated that part of the planned international assistance has not yet arrived because Ukraine has not fulfilled a number of obligations to international partners. This has necessitated the implementation of strict anti-crisis measures. The government has adopted a decision on the prioritization of expenditures, which includes:
- funding for defense;
- pension payments and social assistance;
- salaries for teachers, doctors, and other budgetary employees.
Impact on Local Budgets
The Prime Minister urged local authorities to review their budgets and limit expenditures that are not critically important. This includes halting new construction, renovations, capital repairs, landscaping of parks and squares, and other spending that is not a priority.
Context of the Economic Situation
At the beginning of September, Koretsky announced a "strict austerity regime" due to a defense deficit of $27 billion. Ukraine has appealed to international partners for urgent assistance to cover this deficit, but the European Union has stated that this issue is not currently under consideration. Two weeks later, the situation became critical as delays in legislation in the Verkhovna Rada jeopardized the receipt of part of the $29.5 billion in international aid, leading the Ministry of Finance to impose forced limitations on state expenditures.