The cabinet over the refrigerator is probably 36" wide, whereas the one above the range is probably 30" wide.

Paint definitely. Add a nice countertop and backsplash. Get rid of that boxed light fixture and put in a different fixture or do recessed lights.

If it was me, I'd also be tempted to rip out that soffit, unless it is hiding something. It rather dominates the room.

I too couldn't help but notice the soffit, that appears to be 24" deep. Yikes. You can trim that down to 12" but it's a lot of work and very dirty, dusty work at that.

You don't need to move the cab over the fridge, you need to enclose the fridge with plywood on either side, and then pull the cab forward to be flush with the wood and the front of the fridge. You can do this for the price of plywood.

Also, an over-the-range microhood is no way to "update" a space. If the hood you have now vents to outside, it is a better choice regardless of its appearance, so I've saved you $$ there.

Leave the counters alone. If you upgrade them beyond the builder-grade cabinetry, it will look odd. Besides, they appear to be in decent shape.

I think your budget of 2K for new counters, floors, hardware, lighting and faucet is unrealistic unless you are able to do the installation yourself.

All of this strikes me as a little premature. Perhaps you could paint the walls and cabs, definitely change the light box, and live with the layout for a year or two, all the while saving up to do a proper reno. By that I don't mean a horribly expensive reno, but one that improves form and function. Any changes you make now will improve the look of the space a little, but there's no point making cosmetic changes until you know how the space works for you.

Best of luck whatever you decide.

You might also consider getting a couple glass cabinet doors to lighten things up, perhaps flanking the sink?

I would get a counter depth refrigerator and a more subtle lighting fixture! lol

The soffit won't be nearly as noticeable if it's not bright yellow and is close to the cabinet color. I would think it's functional but maybe not; it does seem to run only where the cabinetry is. You could remove it and add some crown molding to the top of the cabinetry for a more finished look.

I like the cabinets...wouldn't paint. Especially leave the base set up alone.I think the extra deep soffit is challenging...but longterm may be something you want to remove. So are the upper cabs going to work then?....you can plan how you would manage the wall layout with those painted white for instance...maybe adding glass upper cabs to take it higher....more molding....or just get new uppers. I would want a new French door/ bottom freezer drawerfridge-treat yourself-wait on all the other things a bit except for painting the yellow .....and even without a whole lighting redo,replace the boxy ceiling fixture with one that sits more flush for now..... Can't tell what the counters are, but they look fresh, and the sink looks better than average for a drop in-get a new faucet along with fridge.

So new plan is to buy a new fridge that isnt as wide, keep the color of the cabinets but buy new hardware, get a new faucet, light fixture and PAINT

to the right of the fridge is the pantry, any ideas what to do w/ microwave if i keep current set up for more counter space?