Ukraine Proposes Record $110 Billion Defence Budget for 2027

Ukraine has proposed a record defence budget for 2027, with military spending set to reach 4.89 trillion hryvnias ($110 billion), 12% higher than this year, according to a draft budget presented to parliament on Wednesday.

Defence would account for roughly two-thirds of total planned expenditure of 7.27 trillion hryvnias, while revenues are forecast at 5.6 trillion hryvnias.

"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," said Roksolana Pidlasa, head of the parliamentary budget committee, noting that state revenues are not rising as fast as spending.

The daily cost of the war has climbed to $190 million this year, up from $116 million in 2022 when Russia launched its full-scale invasion, Pidlasa told lawmakers.

Finance Minister Sergii Marchenko said Ukraine would need more than $52 billion in international financial aid next year. The government has secured commitments of about $20 billion and is negotiating how to cover the remainder. He said Russian assets frozen by Ukraine's European allies could become a key funding source in 2027.

Marchenko described the financial situation as increasingly complicated, with intensified Russian strikes on businesses and infrastructure reducing budget revenues even as the armed forces require more funds. Ukraine currently faces an unfunded additional defence gap of $27 billion this year as it seeks to raise army wages and expand weapons production.

In earlier years of the war, Kyiv covered defence needs from its own revenues and relied on foreign aid for social and humanitarian spending. Since the invasion, Ukraine has received about $198 billion in fiscal assistance from partners, with the European Union providing the largest share.

Continued financing depends on Kyiv pushing through tax and governance reforms and meeting financial and budget conditions. On Wednesday, parliament passed in first reading a bill to tax foreign parcels, moving closer to a key condition for unlocking funds from the International Monetary Fund and the European Union.

Marchenko said the measure, alongside other tax and customs reforms, brings Ukraine's e-commerce framework closer to EU standards and paves the way for around 4 billion euros in EU macro-financial support.

Lawmakers have until October 1 to review the draft budget and submit proposals, with final passage in three readings required by December 1.