---
title: "Ukraine Submits 2027 Budget Draft to the Rada: Nearly 44% of GDP Allocated to Defense"
description: "Ukraine's Cabinet of Ministers submitted the 2027 state budget draft to the Rada on September 15: 4 trillion 885 billion hryvnia (nearly 44% of GDP) has been allocated to defense. At least 1 trillion hryvnia in international assistance is expected."
date: 2026-09-15T18:44:01.000Z
lang: en
url: https://xab.info/en/posts/ukraine-2027-budget-draft-defense-44-gdp
tags: [ukraine-budget-2027, defense-spending, ukraine-economy, imf, eu-assistance, verkhovna-rada]
publisher: "XAB.info"
---

# Ukraine Submits 2027 Budget Draft to the Rada: Nearly 44% of GDP Allocated to Defense

![500 hryvnia banknote with Taras Shevchenko portrait and tanks in the background — symbol of Ukraine's defense spending in the 2027 budget](https://xab.info/media/2026/09/16/ukraina-proekt-gosbyudzhet-2027-oborona-44-vvp/ukraina-proekt-gosbyudzhet-2027-oborona-44-vvp-1.webp)

## 🎯 Key Points

- Ukraine's Cabinet of Ministers submitted the 2027 state budget draft to the Verkhovna Rada on September 15, 2026; the full text had not been published as of the time of submission
- 4 trillion 885 billion hryvnia has been allocated to the defense sector — nearly 44% of GDP; at least 1 trillion hryvnia in international material and technical assistance is expected
- The government plans to reduce the budget deficit from 18.5% of GDP in 2026 to 5.5% of GDP in 2029
- The draft was prepared against the backdrop of a critical financial position in 2026: a 27 billion hryvnia defense shortfall and failed votes on IMF and EU tranches

The Cabinet of Ministers of Ukraine submitted the draft law on the state budget for 2027 to the Verkhovna Rada on September 15, 2026. The document has been handed over to the parliament's leadership, and its full text had not been published in the media as of the time of submission. As Prime Minister Serhiy Korytsia stated, the key priorities of the budget remain meeting the needs of the security and defense sector, as well as preserving the financial stability of the state. Work on the draft began as early as late July, and on June 17 the Cabinet approved the Budget Declaration for 2027–2029, which served as the basis for drafting the document.

### Defense Sector: Nearly 44% of GDP

The central element of the 2027 budget draft is funding for the defense sector, for which 4 trillion 885 billion hryvnia has been allocated — nearly 44% of the country's gross domestic product. In addition, the state expects to receive material and technical assistance from international partners worth at least 1 trillion hryvnia, exceeding the figures for the current year. According to the Prime Minister, these resources will be directed toward the procurement of weapons, missiles, equipment, ammunition, and munitions. Korytsia emphasized, however, that the actual needs of the defense forces are significantly higher than the amounts laid out in the budget.

### Social Programs and Civil Expenditure

Beyond defense-related items, the draft provides for increased spending on key civilian areas. Funding is rising for social programs, support for veterans and internally displaced persons, housing construction, and military risk insurance programs. Regions and local communities will also receive additional resources for the recovery and development of territories. According to the previously approved Budget Declaration for 2027–2029, the minimum wage in 2027 is to grow at a pace that outstrips inflation, while the subsistence minimum is planned to be raised by the level of inflation plus 2 percentage points.

### International Financing and Commitments to the IMF and the EU

The indicators in the budget declaration have been coordinated with international partners and take into account Ukraine's obligations under the IMF and EU programs. In 2027, the country is expected to receive 45 billion euros in support from the European Union. The government plans to gradually reduce the state budget deficit — from 18.5% of GDP in 2026 to 5.5% of GDP in 2029. The Budget Declaration provides for two scenarios: a baseline scenario, under which the security situation improves from 2027, and a resilience scenario, which accounts for the possibility of a prolonged course of military operations. The baseline scenario forms the basis of the indicators.

### Context: The Critical Financial Position of 2026

The 2027 budget draft was prepared against the backdrop of an acute financial crisis in the current year. In 2026, Ukraine faced a shortfall of 27 billion hryvnia for defense needs: according to Korytsia, the Ministry of Defense has already exhausted the funds allocated for the rest of the year due to the rising cost of the war. On September 1, the Verkhovna Rada failed for the second time to adopt two bills necessary for receiving the third IMF tranche of 0.7 billion dollars and the second tranche of EU macro-financial assistance of 3.7 billion euros. On September 10, Finance Minister Serhiy Marchenko stated that Ukraine was "on the brink" due to a shortage of funds, and warned of the risk of delays in social payments and salaries for budget-sector workers. On September 14, Korytsia reported that the state of public finances was "close to critical," and that delays in voting could put a significant portion of the 29.5 billion dollars in international financing at risk.

### Next Steps

The final parameters of the 2027 state budget will be determined during the consideration and adoption of the corresponding law by the Verkhovna Rada. As of the evening of September 15, the text of the draft law had not yet been published on the parliament's website — the document was at the stage of being handed over to the leadership. Amid ongoing hostilities and a high dependence on external financing, the 2027 budget will become one of the most complex documents in the history of independent Ukraine.

## 🔍 Fact-Check Verification

- [Cabinet submits 2027 state budget draft to the Rada](https://www.rbc.ua/ukr/news/kabmin-vnis-radi-proekt-derzhbyudzhetu-2027-1789414983.html) - Основной источник: факт внесения проекта, сумма оборонного финансирования (4 трлн 885 млрд грн), ожидаемая международная помощь (не менее 1 трлн грн), цитаты Корецкого.
- [2027 State Budget: What is Known About the Draft Submitted to the Verkhovna Rada](https://unn.ua/ru/news/gosbyudzhet-2027-chto-izvestno-o-proekte-vnesyonnom-v-verkhovnuyu-radu) - Подтверждает факт внесения и ключевые параметры. Дополнительно раскрывает детали Бюджетной декларации и сценариев.
- [Cabinet submits 2027 state budget draft to the Rada](https://korrespondent.net/business/economics/4912021-kabmyn-vnes-v-radu-proekt-hosbuidzheta-na-2027-hod) - Совпадает по ключевым цифрам и цитатам премьера. Подтверждает хронологию подготовки (конец июля — 15 сентября).
- [Cabinet files 2027 budget draft with the Verkhovna Rada](https://fakty.com.ua/ru/ukraine/ekonomika/20260915-kabmin-podav-do-rady-proyekt-derzhbyudzhetu-2027-skilky-zaklaly-na-oboronu/) - Подтверждает сумму оборонного финансирования и контекст критического финансового положения 2026 года (дефицит 27 млрд грн, заявления Марченко и Корецкого).

## ❓ FAQ

### Q: How much money has been allocated to defense in the 2027 budget?
**A:** The 2027 budget draft allocates 4 trillion 885 billion hryvnia to funding the defense sector, which amounts to nearly 44% of Ukraine's GDP. In addition, at least 1 trillion hryvnia in international material and technical assistance is expected.

### Q: When was the 2027 budget draft submitted to the Verkhovna Rada?
**A:** The Cabinet of Ministers of Ukraine submitted the draft law on the state budget for 2027 to the Verkhovna Rada on September 15, 2026, within the timeframe set by law. As of the evening of the same day, the full text of the document had not yet been published on the parliament's website.

### Q: What budget deficit is laid out for 2026–2029?
**A:** The government plans to gradually reduce the state budget deficit: from 18.5% of GDP in 2026 to 5.5% of GDP in 2029. These figures are set out in the Budget Declaration for 2027–2029, approved by the Cabinet on June 17, 2026.

### Q: What risks are associated with adopting the 2027 budget?
**A:** The main risk is dependence on external financing. In 2026, the Rada twice failed to adopt the bills necessary for receiving the IMF and EU tranches. Finance Minister Marchenko warned on September 10 of the risk of delays in social payments, while Prime Minister Korytsia called the situation "close to critical" on September 14. The final parameters of the budget will be determined during the vote in parliament.