Government submits 2027 budget draft, earmarking nearly 44% of GDP for defense
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Cabinet building (Photo: wikipedia/KyivMax)
The Cabinet of Ministers late on Sept. 15 approved a bill on
Ukraine’s 2027 state budget prepared by the Finance
Ministry.
The draft budget projects revenues of UAH5.648 trillion ($136.1 billion), 8.7% higher than the revised 2026 budget plan.
It projects expenditures of UAH7.272 trillion ($175.2 billion), an increase of 13.5% from the revised 2026 plan.
Ukraine’s need for international support is expected to total $52.6 billion. The government plans to secure funding from the European Union, G7 countries through the Extraordinary Revenue Acceleration financing mechanism, the International Monetary Fund, the World Bank, the United Kingdom, and other international partners.
Defense and security are the top priorities in the 2027 draft budget, with UAH4.885 trillion ($117.7 billion) allocated to them, equal to 43.8% of GDP.
Commenting on the draft, PM Sergii Koretskyi said the defense forces’ needs for 2027 are significantly higher.
“The cost of the war is rising,” Koretskyi wrote on Telegram.
“This is the budget of a country at war. Our key task is to meet security and defense needs while maintaining financial stability.”
The draft allocates UAH328.5 billion ($7.9 billion) for education and UAH292.5 billion ($7.0 billion) for health care. Funding for social programs, veterans’ support and assistance for internally displaced people is also increasing, as is funding for housing.
Regions and local communities are expected to receive additional resources for reconstruction, development and improving residents’ quality of life.
The government plans to allocate UAH96 billion ($2.3 billion) for business-support programs, nearly twice as much as this year. The draft also includes separate funding for war-risk insurance.
“We clearly understand that Ukraine can cover only part of its expenditures with its own revenues. Therefore, responsible and coordinated work with our partners is the foundation for funding the state budget and covering all necessary expenses and needs — military and social,” Koretskyi said.
On Sept. 14, Koretskyi said Ukraine’s public finances
were approaching a critical point and warned that delays in adopting necessary
legislation could jeopardize $29.5 billion in international aid.
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