Full Breakdown
Ukraine Proposes Record Defence Budget for 2027 Amid Rising War Costs
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Core Proposal and Fiscal Scope
Ukraine’s draft budget for 2027 earmarks 4.9 trillion hryvnia (about $110 billion) for defence and security, representing roughly two-thirds of total spending and about 44 percent of the nation’s GDP. About one-third of the allocation is slated for soldiers’ wages, with the remainder directed toward weapons and equipment. By comparison, Russia’s 2027 defence plan foresees spending around 13.6 trillion rubles (? $205 billion), or roughly 30 percent of its budget.
War-Driven Financial Pressures
The fifth year of the conflict has pushed the daily cost of the war to $190 million, up from $116 million in 2022, according to parliamentary budget committee head Roksolana Pidlasa. Finance Minister Sergiy Marchenko told parliament that Ukraine will need more than $52 billion in international aid for 2027, on top of the roughly $20 billion already pledged by partners. Since the invasion began, Kyiv has received about $198 billion in fiscal assistance, primarily from the EU. Current budget gaps total $27 billion, prompting the government to seek additional revenue streams, including a tax on foreign parcels. The Ekonomichna Pravda newspaper reported on September 17 that the finance ministry postponed winter-energy system spending until December because of funding shortfalls.
Official Statements & Responses
- “Parliament advanced two essential tax and customs reforms that bring Ukraine’s e-commerce framework closer to EU standards, strengthen fiscal resilience and support fairer competition for Ukrainian businesses,” — Sergiy Marchenko, finance minister.
- “This is the sixth budget of the full-scale war, and it’s again bigger than the previous one. During these years, the war has become more expensive,” — Roksolana Pidlasa, head of the parliamentary budget committee.
Legislative Timeline
The draft budget was presented on September 16. Lawmakers have until early October to review proposals, and the spending plan must be approved in three parliamentary readings by December 1.
What’s Next
Ukraine is seeking an additional $53 billion in foreign financing for 2027, with frozen Russian assets cited as a potential source. Successful implementation of the new tax and customs reforms is expected to unlock roughly €4 billion in EU macro-financial support, contingent on meeting IMF and EU fiscal conditions.
Verbatim Quotes
- “This is the sixth budget of the full-scale war, and it's again bigger than the previous one. During these years, the war has become more expensive,” — Roksolana
- “Parliament advanced two essential tax and customs reforms that bring Ukraine's e-commerce framework closer to EU standards, strengthen fiscal resilience and support fairer competition for Ukrainian businesses,” — Sergiy Marchenko, ukraine’s finance minister