Ukraine’s parliament approves 2027 state budget in first reading
With security and defense allocations accounting for around two-thirds of planned expenditure and a projected deficit of nearly Hr 1.7 trillion ($37 billion), the budget highlights the challenge of funding the war while maintaining economic stability and meeting social commitments.
Ukraine’s parliament has given initial approval to a 2027 state budget that prioritizes defense spending amid ongoing Russian aggression. With security and defense costs making up roughly two-thirds of the projected expenditure, the budget underscores the significant financial strain of sustaining the war while striving for economic stability and fulfilling social obligations.
The draft legislation garnered support from 239 MPs, surpassing the necessary 226 votes. Twenty-five MPs opposed it, while 26 abstained. The government anticipated revenue of Hr 5.65 trillion ($123 billion) and expenditure of Hr 7.27 trillion ($159 billion). Approximately Hr 4.89 trillion ($107 billion), or 43.8% of the GDP, is earmarked for security and defense.
Prime Minister Serhiy Koretskyi emphasized that the budget caters to the urgent requirements stemming from Russia's full-scale invasion, including vital funding for defense, financial stability, and social programs. The forecast also anticipated a modest 1.3% economic growth, an 8% annual inflation rate, and an exchange rate of Hr 47.1 per U.S. dollar.
The proposed minimum monthly wage stands at Hr 9,546 ($203), and the subsistence minimum is set at Hr 3,559 ($78). By passing the budget in the first reading, the government can review the draft based on recommendations from parliament and present an amended version within two weeks. Over 5,000 amendments and proposals were submitted by MPs and parliamentary committees. The final version is expected to be submitted for a second reading in November.
Written by urgent.news from Kyiv Independent's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
