Ukraine Plans $107.5 Billion for Defence in 2027 Budget

Ukraine’s parliament, the Verkhovna Rada, passed the 2027 state budget (bill No. 16000) in first reading on 28 October 2026, setting aside UAH 4.885 trillion for security and defence. Media convert that to roughly $107-107.5 billion. The bill is not law yet: the second reading and final vote are planned for 23-26 November.

Last updated: 29 October 2026

The numbers

• Vote: 239 in favour, 25 against, 26 abstentions; 226 were needed (Kyiv Independent, h.ua).
• Security and defence: UAH 4.885 trillion, or 43.8% of projected GDP, about two-thirds of all spending. Reports put the share at 66.8% (UNN, Obozrevatel).
• Whole budget: revenue UAH 5.648 trillion, expenditure UAH 7.272 trillion. The gap is about UAH 1.62 trillion, around 15% of GDP (UNN). Some outlets round the deficit to “nearly 1.7 trillion”.
• Assumptions: 1.3% growth, 8% annual inflation, average exchange rate UAH 47.1 per dollar (Kyiv Independent, Obozrevatel).

Which exchange rate gives $107.5 billion?

Not the budget’s own. The conversion in Times of Defence implies about UAH 45.4 per dollar, and Kyiv Independent gives $107 billion. The budget itself assumes an average of 47.1 for 2027 and 48.3 by year-end (Obozrevatel). At 47.1, UAH 4.885 trillion is about $103.7 billion (our calculation). So the headline dollar figure reflects a rate close to today’s market level; if the budget’s assumption plays out, the dollar value is lower.

Year-on-year comparison

According to UNN, the 2027 figure is UAH 517.9 billion (about 11.8-11.9%) above the amended 2026 plan. That implies roughly UAH 4.37 trillion for 2026 (our derivation). The comparison is in nominal hryvnia, and the two years use different rates: the 2026 budget assumed 44.4 per dollar, 2027 assumes 47.1 (LB.ua). In dollar terms the increase is therefore smaller than in hryvnia. The 2026 budget was also revised mid-year, in June, with a large defence increase, so the baseline is the current plan rather than the original one.

How much is paid by Europe

UNN and Obozrevatel report that about UAH 1.73 trillion (35.7%) of the defence line is European funding for weapons and equipment. The budget cannot be covered from domestic revenue: budget committee chair Roksolana Pidlasa put the difference at UAH 4.3 trillion to be covered by international funds (LB.ua). The Finance Ministry estimates total external financing needs at $52.6 billion, of which $20 billion has identified sources and $32.6 billion is still uncovered (LB.ua).

Military pay is part of the package. The Rada backed amendment No. 1279 on higher servicemember pay with 304 votes; reports describe a minimum 20% rise from 1 January 2027 (h.ua).

What comes next

The government will review the Rada’s conclusions and more than 5,000 proposals and submit a revised text in about two weeks (Kyiv Independent). MP Yaroslav Zhelezniak said the second reading and final vote are planned for 23-26 November (UNN). The Prime Minister said defence needs are “significantly higher” than the allocation and that exact cost calculations continue (Cabinet of Ministers). The Cabinet also expects in-kind military aid from partners of at least UAH 1 trillion, more than this year; the source does not say how that is accounted for in the budget.

Related coverage

For the current state of Ukraine’s forces, see our wartime inventory overview. On allied supply, we covered Italy’s delayed 13th aid package.

FAQ

How much will Ukraine spend on defence in 2027?

The draft sets UAH 4.885 trillion, which media convert to about $107-107.5 billion. At the budget’s own 47.1 rate it is about $103.7 billion.

Is the 2027 budget final?

No. Only the first reading has passed. A second reading is planned for 23-26 November, followed by the president’s signature.

What share of GDP is Ukraine’s defence spending?

43.8% of projected GDP, per the draft, and about two-thirds of total budget expenditure.

Sources

• Cabinet of Ministers of Ukraine (kmu.gov.ua): https://www.kmu.gov.ua/news/uriad-skhvalyv-i-peredav-do-verkhovnoi-rady-proiekt-derzhavnoho-biudzhetu-na-2027-rik
• Ukrinform: https://www.ukrinform.net/rubric-economy/4178970-2027-state-budget-draft-approved-in-first-reading.html
• Kyiv Independent: https://kyivindependent.com/ukraines-parliament-approves-2027-state-budget-in-first-reading/
• UNN: https://unn.ua/en/news/the-2027-budget-passed-its-first-reading-in-the-verkhovna-rada-what-is-included-and-what-comes-next
• h.ua: https://en.h.ua/2026/10/27/ukraine-parliament-advances-2027-budget
• Times of Defence: https://www.timesofdefence.com.tr/verkhovna-rada-approves-first-reading-of-draft-2027-state-budget-allocating-43-8-of-gdp-to-security-and-defense/
• Obozrevatel: https://www.obozrevatel.com/ukr/section-ekonomika-glavnaya/analytics-and-forecasts/news-sotsstandarty-za-mezheyu-bidnosti-novyy-kurs-dolara-zrostannya-tsin-byudzhet-2027-proyshov-pershe-chytannya-u-radi-28-10-2026.html
• LB.ua: https://lb.ua/economics/2026/09/16/766604_uryad_podav_radi_skladniy.html