State budget falls $690 million short of eight-month revenue plan

Ukraine's state budget experienced a $690 million shortfall in revenue during the first eight months of 2026, falling short of the eight-month revenue plan, according to Verkhovna Rada Budget Committee Chair Roksolana Pidlasa. The general fund received UAH 1.7 trillion ($35.4 billion) in revenue, excluding grants, which was UAH 33.1 billion ($690 million) less than the target.

Nearly half of the shortfall, amounting to UAH 15.6 billion ($325 million), occurred in August alone. Revenue from primary budget-forming taxes and fees fell short by almost UAH 84 billion ($1.75 billion). The largest shortfall was from Ukraine's value-added tax on goods produced in Ukraine, which brought in 14% less than planned at UAH 35.6 billion ($742 million).

Despite these shortfalls, some revenue sources exceeded expectations, with corporate income tax surpassing the target by 12.4%, personal income tax and the military levy bringing in 3.4% more than planned, and excise tax on imports exceeding its target by 1.8%. However, Ukraine has had to rely on external and domestic financing to cover the revenue gap, using $20 billion in international assistance and UAH 317 billion ($6.61 billion) in domestic government bonds.

Pidlasa warned that without the expected EU macrofinancial assistance totalling $4.26 billion and IMF financing of $1.66 billion, sharp cuts in budget expenditures are likely in the near future. Defense accounted for the largest spending category, consuming 62% of all general fund expenditures. The Verkhovna Rada also failed to pass legislation ending preferential tax treatment for imported parcels worth up to €150, a condition of Ukraine's IMF agreement.