Expenditure control for Ukraine’s reconstruction №22: Review of the 2026 budget draft

Key insights from monthly overview from expenditure control for Ukraine’s reconstruction

• Regulatory changes: The government adopted a new procedure for using the State Fund for Regional Development (DFRR) funds. All projects are now submitted through the DREAM platform and undergo automatic prioritization using a transparent point-based system. Procurement in construction and energy infrastructure reconstruction has been simplified, and new building standards improve accessibility for people with reduced mobility.

• Housing for IDPs: Remote assessment of damaged housing has been introduced, even in active conflict zones, speeding up compensation. The e-Oselya program has been expanded: IDPs and residents of frontline regions can receive up to 70% reimbursement for contributions and payments. Funds from temporarily occupied communities in the 2026 budget are allocated to housing programs.

• Reconstruction financing: A Unified Project Portfolio exceeding UAH 11 trillion has been approved; however, the 2026 budget draft allocates only UAH 109 billion for public investment projects. Most funding is expected from international financial institutions, making it critical to implement priority projects efficiently.

• Procurement in reconstruction: The number of construction procurements increased in 2025, but their total value dropped by almost 40%. Most procedures involve a single participant (90%) and are conducted outside the electronic system (over 65% by value), reducing competition and transparency.

• Sector monitoring: In housing, compensation for damaged homes is provided faster than for destroyed ones. In healthcare, more than 1,000 projects are implemented via DREAM, including the underground wing of a hospital in Kharkiv. In education, 70% of destroyed facilities in Kyiv have been restored, and more than 1,100 across the country.

More details are available in the presentation.

The project aims to create an independent system for monitoring budgetary and donor funds spent on reconstruction, analyzing these expenditures, and engaging the public in overseeing the reconstruction process.

The release was prepared within the framework of the EU-funded project “The recovery spending watchdog”. Previous releases are available here. The project is a joint effort of the Centre for Economic Strategy, the Institute for Economic Research and Policy Consulting, and the NGO “Technologies of Progress”. All project participants are members of the RISE coalition.