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Resilience for Development: The Government Approved the Draft State Budget for 2027

15 September 2026

The Cabinet of Ministers of Ukraine has approved the draft Law of Ukraine "On the State Budget for 2027". The document was prepared on time by the Ministry of Finance, is balanced, and ensures predictable funding of state priorities.

"The draft budget for 2027 has been formed under conditions of ongoing Russian aggression, and the needs of the security and defense sector remain paramount. This is the undeniable priority No. 1 for the Government. All possible internal resources of the state are primarily directed towards Ukraine's ability to effectively resist the aggressor. At the same time, all social and humanitarian obligations will be fulfilled in full: increased expenditures are planned for education, healthcare, and support for veterans and internally displaced persons. To cover these expenditures, timely and predictable international support remains critically important. We are also working on mobilizing internal resources," noted Minister of Finance Sergii Marchenko.

As in previous years, since the beginning of the full-scale invasion by the russian federation, the main priority of the draft state budget remains the financing of the security and defence sector.

At the same time, in the draft State Budget for 2027, the Government increases funding for the social sphere, education (in particular, teachers' salaries will increase by 65% compared to 2025), healthcare, veteran policy, support for internally displaced persons (IDPs), regions and communities, as well as economic development programs.

The revenues of the draft state budget for 2027 are projected at 5 trillion 648 billion UAH, which is 452.1 billion UAH, or 8.7%, higher than the amended plan for 2026.

In 2027, the total volume of expenditures in the draft state budget will amount to 7 trillion 272 billion UAH, which is 864.9 billion UAH, or 13.5% more than the amended plan for 2026.

The need for international support in 2027 will be 52.6 billion US dollars. It is planned to attract funds from the European Union, G7 countries through ERA financing, the International Monetary Fund, the World Bank, Great Britain, and other international partners.

Priorities of the Draft State Budget of Ukraine for 2027*

Defence and Security – 4 trillion 885 billion UAH, or 43.8% of GDP (+517.9 billion UAH or +11.9% to the amended plan for 2026), namely:

  • 1 trillion 791.7 billion UAH for labour remuneration with accruals (+337.5 billion UAH).
  • 2 trillion 298.5 billion UAH for weapons and military equipment (+1.4 billion UAH).
  • 499.9 billion UAH for other expenditures (+127.7 billion UAH).
  • 264.9 billion UAH for reserve funds (+51.3 billion UAH).
  • 30 billion UAH for state guarantees for weapons and military equipment.

Support for Economy and Business – 96 billion UAH (+45.7 billion UAH to the amended plan for 2026), in particular:

  • 29 billion UAH for the National Development Institution: "Affordable loans 5-7-9%" and NDI guarantees (+11 billion UAH).
  • 45 billion UAH for providing housing to citizens under the "eOselia" program (+27.9 billion UAH).
  • 10.1 billion UAH for the Innovation Development Fund: Brave1 defence technologies, new samples of equipment for defence needs, robotics and unmanned technologies, and research into special innovative technologies (+2.7 billion UAH).
  • 9.4 billion UAH for active business support programs (+4.1 billion UAH).

A resource of 58.7 billion UAH is allocated for business insurance against war risks and other forms of financial support. One possible source for this is raising the standard tax rate by 1 percentage point from 20% to 21%, which will require a legislative decision.

An additional 8.3 billion UAH is planned to protect fuel-sector enterprises from such risks, potentially funded by an increase in the fuel excise tax.

Veteran Policy – 20.5 billion UAH (+3 billion UAH to the amended plan for 2026), in particular:

  • 12.2 billion UAH to support veterans returning to civilian life (+4.1 billion UAH). 

This includes payout programs, recovery and rehabilitation measures, psychological assistance, professional adaptation, escort specialists, state veteran spaces, and support for the Ukrainian Veterans Fund.

  • 6.9 billion UAH for housing compensation for veterans with Group I and II disabilities (+1.2 billion UAH).

Social Payments and Measures of the Ministry of Social Policy – 540.3 billion UAH (+72.6 billion UAH to the amended plan for 2026), in particular:

  • 292.8 billion UAH transfer to the Pension Fund to pay pension supplements (+41.5 billion UAH).
  • 66.4 billion UAH – support for persons with disabilities and their social integration, prosthetics (+31.9 billion UAH), in particular:
    ⇒ 51.9 billion UAH – for the payment of increased assistance to children with disabilities and persons from this category (+28.3 billion UAH);
    ⇒ 11.5 billion UAH – provision of assistive rehabilitation devices and highly functional prosthetics (+3.6 billion UAH);
  • 4 billion UAH for nationwide social services (+2 billion UAH).

Social Funds Expenditures – 1 trillion 311.4 billion UAH (+218.2 billion UAH to the amended plan for 2026), in particular:

  • 1 trillion 278.8 billion UAH (+213 billion UAH) for Pension Fund expenditures.
  • 31.6 billion UAH for the Unemployment Fund (+5.3 billion UAH).
  • 1 billion UAH for the State Fund for Social Protection of Persons with Disabilities.

Support for Internally Displaced Persons (IDPs) – 83.2 billion UAH (+11.6 billion UAH to the amended plan for 2026), in particular:

  • 39.6 billion UAH for IDP living allowance (+0.9 billion UAH).
  • 11.5 billion UAH for compensation for destroyed property (+0.7 billion UAH).
  • 12 billion UAH for temporary accommodation support measures for IDPs (+5.3 billion UAH).
  • 5.5 billion UAH for destroyed housing compensation under the "HOME" program (+0.3 billion UAH).
  • 4 billion UAH for IDP social services (+2 billion UAH).
  • 3.7 billion UAH for "eOselia": covering the first installment and interest for the first year (+1 billion UAH).
  • 3.5 billion UAH for employment programs (+1.2 billion UAH).
  • 3.4 billion UAH for "eVidnovlennia" for damaged housing (+0.2 billion UAH).

Education (all key spending units) – 328.5 billion UAH (+50.8 billion UAH to the amended plan for 2026), in particular:

  • 235.3 billion UAH – salaries of educational institution employees (+37.5 billion UAH), including 192.8 billion UAH – educational subvention and supplements (+32.1 billion UAH);
  • 8.3 billion UAH – academic scholarships (+3 billion UAH);
  • 19.5 billion UAH – meals for all students of grades 1–11 in schools of communal and state ownership (+5.1 billion UAH);
  • 13.5 billion UAH – public investment projects: construction of shelters (3.7 billion UAH), purchase of buses, renovation of catering blocks, development of the NUS (New Ukrainian School), etc.

The average monthly salary of an experienced teacher in 2027 is projected to be 27.3 thousand UAH. This is 65% higher than in 2025.

Healthcare (all key spending units) – 292.5 billion UAH (+35 billion UAH to the amended plan for 2026), in particular:

  • 225 billion UAH – Medical Guarantees Program (+33.5 billion UAH), including:
    ⇒ 203.3 billion UAH (+20.5 billion UAH) – an increase in tariffs for medical services will allow increasing the average salary of a doctor to a level of at least 30 thousand UAH;
    ⇒ 21.7 billion UAH (+13 billion UAH) – "Affordable Medicines" program.
  • 20.8 billion UAH – centralized procurement of medicines (+5.6 billion UAH);
  • 10 billion UAH – health screenings for the population aged 40+ years;
  • 13.3 billion UAH – public investment projects in the healthcare sector;
  • 1.6 billion UAH – medical services for veterans: dental prosthetics, cryopreservation of reproductive cells (+0.3 billion UAH).

Increasing expenditures under the Medical Guarantees Program in 2027 will allow the revision of tariffs for certain medical services. This will make it possible to increase the average salary of a specialised medical care doctor to 30 thousand UAH (+11.9% compared to 2026) and the average salary of a nurse to 20 thousand UAH.

Sports and Youth – 6.85 billion UAH (+0.98 billion UAH to the amended plan for 2026), in particular:

  • 6.56 billion UAH – for the dignified representation of Ukraine in the global sports arena (+0.86 billion UAH);
  • 201.5 million UAH – creation of conditions for the self-realization of youth in Ukraine, in particular 140 million UAH – youth grants (+50 million UAH). In 2027, 1,800 grants are provided for, which is 2.5 times more compared to 2026;
  • 91.5 million UAH – formation of a conscious, responsible Ukrainian political nation, in particular the development of the Plast movement (+68.5 million UAH).

Housing Policy – 84.9 billion UAH (+38.3 billion UAH to the amended plan for 2026), in particular:

  • 45 billion UAH – provision of housing for citizens under the "eOselia" program (+27.9 billion UAH);
  • 6.9 billion UAH – housing compensation for veterans with Group I and II disabilities (+1.2 billion UAH);
  • 24.4 billion UAH – housing programs: "eVidnovlennia", compensations, vouchers, subvention (+8.9 billion UAH);
  • 2.4 billion UAH – housing for the military;
  • 5.5 billion UAH – compensation for destroyed housing under the "HOME" program (+0.3 billion UAH);
  • 0.7 billion UAH – Energy Efficiency Fund: co-financing the improvement of housing energy efficiency and financing the restoration of destroyed housing

Support for Agricultural Producers – 7.4 billion UAH. Funds are provided to support farmers, humanitarian demining, agribusiness grants, land reclamation, and business relocation.

Public Investment Projects and Programs – 116 billion UAH (+3.9 billion UAH), with 76.4 billion UAH from international financial organisations and foreign governments. Main areas include transport, municipal infrastructure, education, healthcare, energy, housing, and social services.

Support for Regions and Communities – 133.6 billion UAH (+42.2 billion UAH to the amended plan for 2026). Includes regional resilience plans, the State Regional Development Fund, subventions for public investments and local roads, additional subsidies for frontline/occupied territories, and coverage of tariff differences. 

The total resource of local budgets in 2027 will be 1 trillion 34.5 billion UAH (+123.9 billion UAH, or 13.6% compared to 2026).

Planned partial (25%) restoration of the State Road Fund – 52.8 billion UAH, of which:

  • 10.1 billion UAH – fulfilment of debt obligations on borrowings attracted for the development of the public highway network;
  • 34.2 billion UAH – financing the maintenance and development of state-importance public roads;
  • 8.5 billion UAH – financing the maintenance and development of locally important public roads, municipal streets, and roads in settlements (subvention to local budgets).

In addition, 18.2 billion UAH will be allocated to cover the tariff difference as part of support for regions and communities. This will allow compensation for the difference between the economically justified cost of utility services and tariffs for the population, reducing the corresponding financial burden on communities and people.

From 2027, 61.5 million UAH will be provided to support the Plast movement.

*Planned expenditures for all key spending units

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