Ukraine’s parliament approves 2027 state budget in first reading
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Ukraine’s parliament has backed a 2027 budget that puts defense at the center of government spending, as Russia’s full-scale war continues to drive the country’s financial needs.
With security and defense allocations accounting for around two-thirds of planned expenditure and a projected deficit of nearly Hr 1.7 trillion ($37 billion), the budget highlights the challenge of funding the war while maintaining economic stability and meeting social commitments.
A total of 239 MPs voted in favour of the draft, above the 226 votes required. Twenty-five voted against and 26 abstained.
The government’s proposal forecasts revenues of Hr 5.65 trillion ($123 billion) and expenditure of Hr 7.27 trillion ($159 billion). Around Hr 4.89 trillion ($107 billion) is allocated to security and defense, equivalent to 43.8% of projected gross domestic product.
Prime Minister Serhiy Koretskyi said the budget reflects the realities of Russia’s full-scale war and the country’s key needs for the coming year.
"First and foremost, this means the necessary funding for security and defense, maintaining financial stability and meeting important social commitments to the people," he said.
The draft also assumes economic growth of 1.3% in 2027, annual inflation of 8% and an exchange rate of Hr 47.1 to the U.S. dollar. The proposed minimum monthly wage is Hr 9,546 ($203), while the subsistence minimum is set at Hr 3,559 ($78).
Approving the budget in the first reading allows the government to revise the draft in line with parliament’s recommendations and submit an updated version within two weeks. MPs and parliamentary committees submitted more than 5,000 proposals and amendments.
The government is expected to submit the final draft for a second reading in November.
