Not enough money: construction, repairs and public improvements are being postponed in Ukraine

28 September 2026, the government of Ukraine decided to determine the prioritization of state expenditures against the backdrop of a difficult situation with public finances and delays in part of the planned international financing. This was reported by Prime Minister Serhiy Koretskyi.

According to the prime minister, part of the international financing has not yet arrived, in particular due to non-fulfillment by Ukraine of some of the obligations it undertook to international partners. In such circumstances the government continues to apply anti-crisis measures to ensure funding for defense and the social needs of the population.

First and foremost the state will finance defense needs, pensions and social payments, as well as the salaries of teachers, doctors and other public sector workers.

At the same time, expenditures that are not priority have been decided to be postponed. This refers, in particular, to new construction, reconstruction and major repairs that are not critically necessary. Restrictions will also affect public improvement projects: parks, squares, fountains and works to re-lay cobblestones.

Serhiy Koretskyi also urged local governments to review their own budgets and set priorities taking the financial situation into account.

“It’s time to finally stop spending money on non-priority things,” — emphasized Serhiy Koretskyi.

The government’s decision is linked not only to the current cash shortfall but also to problems obtaining international financing. Earlier Serhiy Koretskyi said that the deficit of the defense budget’s needs amounts to 27 billion dollars. About 7 billion dollars the government plans to secure through strict austerity, optimization and reallocation of expenditures, while a further 20 billion dollars is being sought together with international partners.

According to the prime minister, funds are needed to provide the Defense Forces with drones, missiles, equipment and other necessary means. At the same time he emphasized that social expenditures must be financed on time and in full.

The government also plans to implement the necessary measures to obtain the promised international financial assistance by 15 October 2026.

For Mykolaiv and other communities this decision means the need to more carefully review local budgets and postpone non-critical expenditures. At the same time, the specific list of local projects that may be suspended will depend on the decisions of the respective local self-government bodies.

Earlier we wrote:

• In Mykolaiv the community budget was increased by UAH 780 million: part of the funds will be directed to defense
• They want to increase Mykolaiv’s budget by 783 million: where the money will come from
• Authorities warn of a “shutdown”: in Mykolaiv they said funds may run out as early as November
• “From September 1 there is no money for salaries”: Topchiy warned about the situation in cultural institutions
• Children may be left without food: in Mykolaiv funds for kindergartens will be enough only until 9 July