Topic: Social protection
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Ukraine suspends non-priority spending as PM warns of critical fiscal squeeze
Ukraine's Cabinet of Ministers approved a decision on 28 September prioritizing state expenditures toward defense, pensions, social payments and public-sector salaries, while suspending non-critical construction, reconstruction, capital repairs and beautification projects until the end of the war. Prime Minister Serhiy Koretsky said part of the pressure stems from delayed international financing, in part because Ukraine has not fulfilled some of its commitments to international partners. The government has identified about $7 billion through internal optimization against a reported $27 billion Ministry of Defense deficit.
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Ukraine receives $841 million from World Bank under Canadian guarantees for pension payments
Ukraine has received $841 million in financing from the World Bank under guarantees from the Canadian government, with the funds directed to reimbursing state budget pension expenditures. The transfer was raised under the PEACE in Ukraine project, whose total volume has now reached $54.3 billion. Prime Minister Serhiy Koretsky announced the funding via Telegram and thanked Canada and the World Bank for timely assistance amid a significant budget deficit.
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Russian drones hit Zaporizhzhia, damaging heritage-listed university building, shopping mall, and apartment blocks
Russian drone strikes hit Zaporizhzhia overnight on September 21, 2026, damaging two nine-story residential buildings, the Intrade shopping mall on Soborny Avenue, and three buildings of Zaporizhzhia National University, including a direct hit on its 1902 heritage-listed Building No. 3. Most Ukrainian sources report five civilians wounded, though later updates cite six. The strike was part of a nationwide overnight barrage of 172 strike UAVs and other munitions, with hits recorded at 14 locations across Ukraine.
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Ukraine's government submits 2027 draft budget to parliament: defense at 44% of GDP, $52.6 billion external financing required
Ukraine's Cabinet of Ministers approved and submitted the draft State Budget for 2027 to the Verkhovna Rada on September 15, 2026. The bill, registered as No. 16000, allocates 4 trillion 885 billion hryvnias (about 43.8–44% of GDP) to defense and security, projects total expenditures of 7 trillion 272 billion hryvnias, and identifies an external financing requirement of $52.6 billion, of which only $20 billion has been confirmed by partners.
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Ukraine to receive $841 million in World Bank budget support backed by Canada
Ukraine will receive $841 million in World Bank budget support under guarantees from the Canadian government, with the funds earmarked to reimburse state pension expenditures. Prime Minister Serhiy Koretsky announced the disbursement via Telegram, calling it extremely important and timely given the budget deficit. The payment comes as Ukraine works to finalize documents needed to unlock $29.5 billion in international financing this year.