Ukraine's draft State Budget for 2027 projects revenues of UAH 5.65 trillion against expenditures of UAH 7.27 trillion, and includes provisions for a fund to insure businesses against war risks.
The Ukrainian Parliament is considering the draft Law on the State Budget for 2027, which was submitted on 15 September 2026. The draft sets a deficit limit of UAH 1.67 trillion and includes provisions for a fund to insure Ukrainian businesses against war risks, to be financed by an increase in value added tax (VAT).
Total revenues are projected at UAH 5.65 trillion, of which the General Fund accounts for UAH 3.22 trillion and the Special Fund for UAH 2.43 trillion. Total expenditures are set at UAH 7.27 trillion, split between the General Fund (UAH 4.78 trillion) and the Special Fund (UAH 2.49 trillion).
Loan repayments to the budget are projected at UAH 15.09 billion, while budget lending is set at UAH 57.26 billion. The deficit limit is UAH 1,666,129,359.9 thousand, comprising a General Fund deficit of UAH 1.57 trillion and a Special Fund deficit of UAH 95.29 billion.
War risk insurance and VAT
One of the main tax-related measures is the provision for establishing a fund to insure Ukrainian businesses against war risks. The fund would be financed by an increase in VAT. The change is expected to raise the standard VAT rate from 20% to 21%, which would require separate amendments to the Tax Code.
Debt and guarantees
The public debt limit as of 31 December 2027 is capped at UAH 12.31 trillion, and the state-guaranteed debt limit at UAH 382.24 billion. The Cabinet of Ministers may issue state guarantees of up to UAH 65 billion, including up to UAH 30 billion for defence and national security programmes. A further UAH 4.92 billion in guarantees may be issued under international agreements.
Social standards and minimum wage
From 1 January 2027, the average monthly subsistence minimum is set at UAH 3,559 per person. By category, it is:
- UAH 3,124 for children under six
- UAH 3,895 for children aged six to 18
- UAH 3,691 for able-bodied persons
- UAH 2,878 for persons who have lost the ability to work
The minimum wage is UAH 9,546 a month and UAH 57.50 an hour. Assistance to low-income families is pegged to the subsistence minimum at 60% for able-bodied persons, 100% for persons with disabilities or lost capacity, and 145% for children.
Revenue mechanisms
The National Bank of Ukraine must transfer at least UAH 48.7 billion of its distributable profit to the state budget. State-owned enterprises and joint-stock companies with state shares that do not approve dividends by 1 May must pay 90% of their net profit to the budget by 1 July. All military levy revenue collected in 2027 goes to the Special Fund to cover monetary compensation for Armed Forces personnel.
The budget also incorporates funds raised under international agreements, including the EU Support Loan agreement dated 27 May 2026. Repayment is tied to income generated from frozen Russian assets.
Spending priorities
Special revenues, including personal income tax redistributions from military personnel, are to be allocated as follows:
- 60% to the Ministry of Defence, for defence-industrial reform, arms production, procurement and drone destruction incentives
- 30% to the State Special Communications Service
- 10% directly to military units for material and technical support
Fines, confiscated assets and voluntary court settlements from investigations by the Bureau of Economic Security, the National Anti-Corruption Bureau, the State Bureau of Investigation and the State Audit Service are earmarked for procuring, repairing and modernising weapons.
The draft also creates the Fund for Liquidation of the Consequences of Armed Aggression within the Special Fund. It would finance economic, social and humanitarian recovery programmes, housing compensation for destroyed properties, and housing credit programmes for internally displaced persons and veterans. Road fund allocations are restructured to cover debt service on road construction loans and rules for local road subventions.
