Ukraine plans to spend nearly 44% of GDP on defense in 2027
Ukraine’s government has approved its draft 2027 state budget, allocating UAH 4.89 trillion (about $109.6 billion at the current official exchange rate) to defense and security as the country prepares for another year of war.
The planned defense and security spending amounts to nearly 44% of Ukraine’s GDP and is UAH 517.9 billion ($11.6 billion) higher than in 2026.
Prime Minister Serhiy Koretskyi said Ukraine also expects its partners to provide at least UAH 1 trillion ($22.4 billion) worth of military assistance, including missiles, weapons, equipment and ammunition.
“The cost of the war is rising,” Koretskyi said, adding that Ukraine’s defense needs for 2027 are significantly higher than the amount currently provided for in the draft budget and that the government is still finalizing its estimates.
Overall, the government expects state budget revenues of UAH 5.65 trillion ($126.7 billion) in 2027, up 8.7% from the 2026 plan. Expenditures are projected at UAH 7.27 trillion ($163 billion), an increase of 13.5%.
Ukraine estimates it will need $52.6 billion in international financial support next year to cover its financing needs.
The draft budget will now be submitted to the Verkhovna Rada, Ukraine’s parliament, for consideration.
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