Ukraine will need $52.6 billion in international financial support in 2027, according to the draft state budget submitted by the government to the Verkhovna Rada. The funds are intended to cover the deficit and ongoing military spending amid the war, the Ministry of Finance of Ukraine reported.
The total cost of the project is 7.27 trillion hryvnia, and the expected revenue is 5.65 trillion hryvnia. The security and defense sector alone receives 4.885 trillion hryvnia, which is 43.8% of the estimated gross domestic product, according to data cited by Ukrainian media and the finance ministry.
Almost 2.3 trillion hryvnia for weapons and equipment
Of the funds earmarked for defense, almost 2.3 trillion hryvnia are intended for weapons and military equipment. Another 264.9 billion hryvnia are earmarked for a reserve in the military sector, and 30 billion hryvnia are earmarked as state guarantees for loans for the purchase of weapons and equipment.
Ukrainian Prime Minister Serhiy Koretsky said that the cabinet expects to additionally raise at least 1 trillion hryvnia from partners for defense needs. According to him, military needs for 2027 are higher than initially estimated, as the cost of war is growing.
Kyiv relies on the EU, G7, IMF and World Bank
According to the Ministry of Finance, the necessary international support should come from the European Union, the G7 countries, the International Monetary Fund, the World Bank, the United Kingdom and other partners. In addition to financial assistance, Kiev also expects material and technical support, including missiles, ammunition, weapons and military equipment.
The planned revenues for 2027 remain significantly below total expenditures, and the gap between the budget and military needs highlights the dependence of Ukrainian public finances on external financing. The authorities in Kiev are preparing the budget against the backdrop of ongoing hostilities and the need to ensure both the military and fiscal sustainability of the country.
Sources: Interfax Ukraine, Ukrinform, Ministry of Finance of Ukraine