Ukraine’s Parliament Advances 2027 Budget with Unprecedented 5,236 Amendments, Boosted Military Funding, and Cashback Financing Ban

Ukraine’s Draft State Budget for 2027

According to 5 канал — Економіка: On October 28, Ukraine’s Verkhovna Rada approved the first reading of the 2027 state budget bill, securing support from 239 deputies. The draft saw a historic influx of 5,236 proposed amendments-the highest number in 24 years. Among these, the Budget Committee incorporated 90 suggestions aimed at increasing financial support for the military and providing state guarantees to defense industry enterprises.

One of the most notable changes was amendment No. 1279, which proposed higher payments to military personnel and passed with 304 votes. Additionally, amendment No. 846 was adopted, banning the allocation of state funds to the 'National Cashback' program in 2027. However, a proposal to cap monthly salaries of judges, prosecutors, National Bank staff, and civil servants at 80,000 hryvnias was rejected. Another rejected measure sought to divert proceeds from corruption-related settlements to a special fund for army payments.

Key Financial Figures in the Budget

The budget outlines total expenditures of 7.272 trillion hryvnias, against projected revenues of 5.648 trillion hryvnias. Defense and security spending is set at 4.885 trillion hryvnias, accounting for 43.8% of the country’s GDP. The budget deficit ceiling is established at 1.67 trillion hryvnias. External financing needs amount to 52.6 billion USD, with 32.6 billion USD still lacking confirmed sources.

• Subsistence minimum: 3,559 hryvnias
• Minimum wage: 9,546 hryvnias
• Average salary: 34,409 hryvnias
• Projected unemployment rate: 12.4%
• Average annual USD exchange rate: 47.1 hryvnias
• Forecasted USD rate by end of 2027: 48.3 hryvnias

The budget’s second reading is scheduled between November 23 and 26. Meanwhile, former President Petro Poroshenko has called on lawmakers to return funds taken from Kyiv’s local budget and to approve bill No. 9358, which would establish systematic funding for the construction and modernization of shelters.

Passing the state budget bill is a crucial step toward maintaining the country’s financial stability, especially amid ongoing conflict and economic challenges. Petro Poroshenko

The upcoming second reading is expected to open the door for further debate and potential adjustments, especially regarding financing for critical sectors such as security and defense. Given the rising expenditures and significant deficit, finding balanced solutions that meet the needs of both the state and its citizens remains essential.

As Ukraine navigates its budgetary challenges, the government is also facing complications in securing international aid. The recent allocation of $7 billion to bolster defense and social support highlights the urgent financial needs of the country. For a deeper understanding of how these funding decisions may impact Ukraine's economic stability, explore our coverage on the delays in international assistance.