Key facts
- Defense and security allocations account for around two-thirds of planned expenditure.
- The projected deficit is nearly Hr 1.7 trillion ($37 billion).
- 239 MPs voted in favor, 25 against, and 26 abstained.
Ukraine's parliament has approved its 2027 state budget in a first reading, with defense spending at the forefront due to the ongoing war with Russia. The budget allocates approximately Hr 4.89 trillion ($107 billion) to security and defense, representing about 43.8% of projected gross domestic product and nearly two-thirds of total planned expenditure. The government forecasts revenues of Hr 5.65 trillion ($123 billion) and expenditures of Hr 7.27 trillion ($159 billion), resulting in a projected deficit of nearly Hr 1.7 trillion ($37 billion). Prime Minister Serhiy Koretskyi stated the budget reflects the war's realities and the country's essential needs, including funding for security, defense, financial stability, and social commitments. The draft also anticipates 1.3% economic growth, 8% annual inflation, and an exchange rate of Hr 47.1 to the U.S. dollar for 2027. The proposed minimum monthly wage is Hr 9,546 ($203). The budget will undergo revisions based on parliamentary recommendations before a second reading in November.