Ukraine's Cabinet of Ministers has approved the draft state budget for 2027 and submitted it to the Verkhovna Rada, the country's parliament, the Ministry of Finance said on its website.
The ministry said the document was prepared on time by the Ministry of Finance, is balanced, and ensures predictable financing of the state's priorities.
Finance Minister Serhiy Marchenko said all possible domestic resources were being directed primarily toward Ukraine's ability to effectively resist the aggressor. He said social and humanitarian obligations would be met in full, with planned increases in spending on education, healthcare, and support for veterans and internally displaced people. He added that timely and predictable international support remained critical to funding those commitments, and that the government was also working to mobilize domestic resources.
As in previous years since Russia's full-scale invasion began in February 2022, financing the security and defense sector remains the main priority of the draft budget.
The 2027 draft also increases funding for the social sphere, education, healthcare, veteran policy, support for internally displaced people, regions and communities, and economic development programs. Teachers' salaries are set to rise 65% compared with 2025.
Budget revenues for 2027 are projected at 5 trillion 648 billion hryvnias, an increase of 452.1 billion hryvnias, or 8.7%, compared with the amended 2026 plan. Total expenditures are set to reach 7 trillion 272 billion hryvnias, up 864.9 billion hryvnias, or 13.5%, from the amended 2026 plan.
Defense Spending Priorities
Defense and security spending is budgeted at 4 trillion 885 billion hryvnias, equivalent to 43.8% of gross domestic product, an increase of 517.9 billion hryvnias, or 11.9%, compared with the amended 2026 plan.
Within that figure, 1 trillion 791.7 billion hryvnias is allocated to wages and related payments, up 337.5 billion hryvnias. Weapons and military equipment account for 2 trillion 298.5 billion hryvnias, up 1.4 billion hryvnias. Other defense-related expenses total 499.9 billion hryvnias, up 127.7 billion hryvnias, while a reserve fund is set at 264.9 billion hryvnias, up 51.3 billion hryvnias. A further 30 billion hryvnias is earmarked for state guarantees on weapons and military equipment.
International Support Needs
Ukraine's need for international support in 2027 is estimated at $52.6 billion. The government plans to draw on funding from the European Union, from Group of Seven countries under the Extraordinary Revenue Acceleration mechanism, and from the International Monetary Fund, the World Bank, the United Kingdom, and other international partners. The Extraordinary Revenue Acceleration mechanism channels loans to Ukraine backed by profits generated from frozen Russian sovereign assets.
Social and Other Spending
The draft budget also allocates 96 billion hryvnias to economic and business support, 20.5 billion hryvnias to veteran policy, and 540.3 billion hryvnias to social payments and measures under the Ministry of Social Policy. Spending by social funds is set at 1 trillion 311.4 billion hryvnias.
Support for internally displaced people is budgeted at 83.2 billion hryvnias, education at 328.5 billion hryvnias, and healthcare at 292.5 billion hryvnias. Sport and youth programs receive 6.85 billion hryvnias, housing policy 84.9 billion hryvnias, support for agricultural producers 7.4 billion hryvnias, and support for regions and communities 133.6 billion hryvnias.
One of the novelties of the 2027 draft budget is a planned partial, 25%, restoration of the State Road Fund, worth 52.8 billion hryvnias.
Minimum Wage and Subsistence Minimum
It was previously reported that the Cabinet of Ministers plans to raise the minimum wage to 9,546 hryvnias in the 2027 draft budget, an increase of 10.4% compared with 2026.
From 2027, the subsistence minimum per person will be 3,559 hryvnias a month, an increase of 350 hryvnias, or 10.9%. For those of working age it will be 3,691 hryvnias, and for those unable to work it will be 2,878 hryvnias.
