Ukraine's state budget expenditures increased: the largest share is directed to defense and social spheres

In the first quarter of 2026, the expenditures of the general fund of the state budget of Ukraine showed a noticeable increase. In January-March, they reached UAH 916.4 billion, which is UAH 60.4 billion or 7.1% more than in the same period of 2025. Such data were published by the Ministry of Finance of Ukraine, citing statistics from the State Treasury Service.

In total, in March 2026, the volume of cash expenditures amounted to UAH 369.1 billion, which was the largest monthly indicator in the first quarter. This indicates the preservation of a high level of budget financing of key state needs.

The largest share of expenditures traditionally falls on the security and defense sector. In the first three months of 2026, UAH 570.9 billion was allocated for these needs, which is 62.3% of all expenditures from the general fund of the state budget. This confirms the priority of defense financing in the conditions of martial law.

Significant funds were also allocated to pay the labor of budget employees. In total, UAH 408.4 billion was allocated for these purposes, including UAH 148 billion in March. This is 44.6% of all expenditures for the quarter and 16.9% more than in the same period last year, which is an increase of UAH 58.9 billion.

Social payments remain an important item. UAH 169.5 billion was allocated for pensions, benefits and scholarships, of which UAH 63 billion in March. This is 18.5% of the total expenditures and UAH 10.6 billion (6.7%) more than a year earlier.

UAH 108.6 billion was allocated to support the economy and enterprises through subsidies and current transfers. Another UAH 98.3 billion went to pay for goods and services, in particular to meet the needs of the Armed Forces of Ukraine and other law enforcement agencies. These funds were used to purchase military equipment, weapons, ammunition, protective equipment, fuel and lubricants, and food, as well as to pay for utilities.

Servicing the state debt cost UAH 65 billion, which is 7.1% of all expenditures. Compared to last year, this figure increased by UAH 6.5 billion, or 11.2%. Another UAH 54.9 billion was allocated to transfers to local budgets, which is 6% of the total and 42.2% more than a year earlier.

In March, these purposes accounted for UAH 15.6 billion for debt service and UAH 18.7 billion for local budgets, respectively, which indicates stable support for regional financing.

Despite significant expenses, budget revenues for January-March 2026 also remained high - UAH 734.6 billion was received in the general fund. This emphasizes the preservation of the balance between state budget revenues and expenditures in conditions of increased burden on the financial system.