Ukrainian government adopts the 2027 budget, with record spending on defense and security

The Ukrainian government has adopted the budget for 2027, which provides for an external financing need of €45.8 billion and record allocations for defense and security amid the war with Russia.

According to the document published by the Ministry of Finance, Kyiv intends to obtain funds from the European Union, G7 countries, the International Monetary Fund, the World Bank, the United Kingdom and other international partners.

Defense and security have been allocated €95.9 billion, 11.9% more than in the 2026 budget. The amount represents 43.8% of Ukraine’s GDP, the largest share allocated to this sector since the beginning of the Russian invasion and, according to the cited data, the highest in the world. By comparison, Russia officially allocated 5.5% of GDP to military spending in its 2026 budget.

The Kyiv government has postponed some spending on winter preparations until December, including funds earmarked for protecting energy infrastructure. Roksolana Pidlasa, chair of the Budget Committee, estimated that each day of the war costs approximately €165 million. Volodymyr Zelenskyy warned that “difficult and unpopular” measures may be necessary to cover the deficit.