Ukraine’s parliament, the Verkhovna Rada, advanced the 2027 budget draft at first reading on Oct. 28. The draft allocates UAH 4.885 trillion for security and defense, and its forecast assumes full-scale fighting will continue through 2027.
The parliament’s bill record lists the measure as adopted at the first stage. A parliamentary roll-call listing for Resolution No. 16000/P, concerning the budget conclusions, shows 239 votes in favor, 25 against and 26 abstentions.
The draft projects UAH 5.648 trillion in revenue and UAH 7.272 trillion in spending. Its deficit ceiling is UAH 1.6661 trillion, or 14.95% of projected gross domestic product. Security and defense account for about two-thirds of proposed spending, an increase of UAH 517.9 billion, or 11.9%, from the amended 2026 plan.
The forecast used for the budget assumes real GDP growth of 1.3% in 2027 and inflation of 8% from December to December. The Budget Committee cited war risks and damage to energy infrastructure as factors behind the slower recovery outlook.
The Finance Ministry estimates Ukraine will need $52.6 billion in international support next year, with planned funding from the European Union, G7 countries, the International Monetary Fund, the World Bank, the United Kingdom and other partners. Budget Committee Chair Roksolana Pidlasa said partner assistance covers much of the deficit and that additional spending without an identified funding source would increase the need.
The draft also counts on UAH 58.7 billion from a proposed value-added tax increase and UAH 8.3 billion from additional fuel-excise increases. Both measures require legislative changes. Planned allocations include UAH 540.3 billion for social payments and measures, UAH 328.5 billion for education and UAH 292.5 billion for health care.
The Budget Committee processed 5,236 proposed amendments into 88 conclusions for the Cabinet to consider as it revises the draft. The Verkhovna Rada said a second-reading vote should take place by Nov. 25, with enactment due by Dec. 1 to support local budget planning.
