Ukraine does not plan to raise taxes in 2026, and will cover the state budget deficit through alternative sources. This was stated by the head of the Verkhovna Rada Committee on Finance, Danilo Hetmantsev. According to him, the deficit of the state budget this year is about 500 billion hryvnias, however, in the parliamentarian’s opinion, this “gap” can be closed without increasing the tax burden on businesses and citizens.
This is reported by Business • Media
Main Sources for Covering the Deficit
Hetmantsev emphasized that the priority tool for filling the budget is the de-shadowing of the economy. It is expected that through the legalization of economic activities in 2025, about 4 billion US dollars (160–170 billion UAH) will be attracted. He also noted that raising taxes without conducting de-shadowing could negatively affect the operations of honest businesses. Among additional sources of funding, he mentioned the issuance of military bonds and fiscal savings, meaning the reduction of ineffective budget programs, which could provide up to 50 billion UAH in additional revenues.
“There are no prospects for raising taxes in 2026, in which the uncovered deficit of the state budget from external sources is larger.”
Budget Deficit Forecast and External Assistance
According to estimates from the Organisation for Economic Co-operation and Development (OECD), in 2025 and 2026, the deficit of Ukraine’s state budget will be about 20% of the gross domestic product. This year, the shortage of funds is primarily covered through external financial support, particularly through the ERA mechanism from G7 countries and the Ukraine Facility from the European Union.