State Budget 2027: UAH 4.89 trillion for defense, minimum wage of UAH 9,546 and a deficit of UAH 1.67 trillion — the key figures of the draft

The Cabinet of Ministers of Ukraine has prepared and submitted to the Verkhovna Rada a draft state budget for 2027. The document sets the macroeconomic framework for the next fiscal year amid ongoing military spending and social commitments. The central parameters are the allocation of UAH 4.89 trillion to the security and defense sector, the update of social standards with the minimum wage raised to UAH 9,546, and a state budget deficit set at UAH 1.67 trillion. These three figures set the overall tone of the document: a significant share of resources is directed to defense, while the state records a moderate deficit and simultaneously raises basic social guarantees.

Social sphere and new standards

The social block of the draft receives a notable boost. The Ministry of Social Policy, Family and Unity is allocated UAH 540.28 billion, which is UAH 72.57 billion more than in 2026. The Ministry for Veterans' Affairs is allocated UAH 20.54 billion, representing a 17.3% increase over the 2026 level. At the same time, social standards are being updated: the minimum wage is raised to UAH 9,546, becoming the baseline for calculating a number of social benefits and a benchmark for the labor market.

Healthcare and education

Substantial amounts of funding are earmarked for healthcare and education. The state budget with transfers for healthcare totals UAH 292.55 billion, of which UAH 225.03 billion goes to the Medical Guarantees Program. Education, including transfers, is allocated UAH 328.49 billion. These items confirm that, alongside the defense block, the state maintains priority funding for basic public services, even under constrained revenues.

Culture, infrastructure and business support

Beyond defense and social spending, the budget draft provides funding for key sectors of the economy, ecology, infrastructure and business support. Culture and the media space are allocated UAH 16.90 billion. The document also contains provisions on the targeted use of additional revenues: funds from a possible VAT increase and international aid are directed to programs and projects supporting economic entities, while revenues from a higher excise duty on fuel go to supporting businesses licensed to produce, store, and wholesale and/or retail fuel.

Tax conditions and funding sources

An important condition for implementing the draft is the potential changes to the Tax Code. If amendments taking effect in 2027 raise VAT rates and/or the excise duty on fuel, the additional resources will be redirected to business support along the lines described above. Thus, the 2027 budget draft combines record defense spending, higher social standards and a mechanism for the targeted use of tax revenues, while keeping the deficit at UAH 1.67 trillion.