Budget 2027: Accounting Chamber identified risks related to UAH 1.5 trillion in loans and defense spending
October 5 2026, 08:50 AM
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The 2027 Budget includes more than UAH 1.5 trillion in external loans without identified creditors. The Accounting Chamber
considers the forecast overly optimistic.
The draft State Budget of Ukraine for 2027 includes more than UAH 1.5 trillion in external loans, but potential lenders have not yet been identified. The Accounting Chamber of Ukraine reported this, pointing out the risks and analyzing defense expenditures, UNNreports.
Details
“The draft State Budget of Ukraine for 2027 provides for attracting more than UAH 1.5 trillion in external loans, while the potential lenders for these loans remain unidentified. Another UAH 131.3 billion in revenue depends on the planned tax changes coming into force. According to the Accounting Chamber’s assessment, this creates risks of insufficient funds being received to finance state needs,” the post says.
The total amount of <a href="https://bitcomme.com/3-european-financial-stocks-investors-are-watching-as-money-market-demand-grows/” title=”3 European Financial Stocks Investors Are Watching As Money Market Demand Grows”>financial resources in the state budget for 2027 is reportedly planned at UAH 8.03 trillion, “which is 12.9% more than the amount approved for 2026.” “More than half of these resources — UAH 4.32 trillion, or 53.7% — is planned to be received in the form of grants and loans from international partners,” the post says.
At the same time, auditors noted that the timely and complete receipt of these funds will determine the possibilities for financing the planned state expenditures. Of these funds, UAH 1 trillion 822.9 billion constitutes external borrowing, the Accounting Chamber stated.
“The forecast regarding the feasibility of attracting foreign funds in precisely these amounts is assessed by the Accounting Chamber as overly optimistic. After all, potential lenders for UAH 1.5 trillion — 88.8% of external borrowing to the general fund — have not yet been identified. Therefore, the failure to receive the necessary amount of financial support from international partners will be the key risk to the financing of the state budget in 2027,” said Accounting Chamber Chairwoman Olha Pishchanska.
Expenditures: the main priority is security and defense
State budget expenditures for 2027 are planned at UAH 7.3 trillion.
Budget expenditures on security and defense are planned at UAH 4.855 trillion, or 66.8% of all expenditures. Of this amount, UAH 1.5 trillion is allocated for payroll, including servicemen’s monetary allowances. Another UAH 264.9 billion constitutes a reserve for the security and defense sector. State guarantees of up to UAH 30 billion are also provided.
“At the same time, if hostilities intensify or the prices of fuel, weapons, and imported components rise, the need for funds may increase. Even taking the allocated reserve into account, there may be a need for additional funds, primarily for the procurement and repair of weapons and military equipment. Therefore, the Accounting Chamber emphasizes the need for a more detailed assessment of the planned expenditures in this area,” the Accounting Chamber’s statement says.
The budget also provides UAH 570.9 billion for social protection and social security. In particular, UAH 292.8 billion is allocated for pensions, UAH 42.3 billion for housing subsidies and benefits, and UAH 38.1 billion for support for families with children.
The Accounting Chamber separately drew attention to the significant difference in approaches to remuneration in state bodies.
In particular, it is proposed that a reference amount of UAH 2,331 be applied to employees of certain state bodies whose remuneration is regulated by special laws, as well as to employees of tax and customs authorities. By contrast, the subsistence minimum for able-bodied persons, amounting to UAH 3,691, is proposed for determining the basic amount of judges’ official salaries. This approach increases the planned amount of payroll expenditures in the judicial system.
The state budget deficit and debt burden
The state budget deficit for 2027 is planned at UAH 1.67 trillion, or 15% of GDP. The total amount of state borrowing will be UAH 2.37 trillion.
At the end of 2027, state and state-guaranteed debt is projected at UAH 12.7 trillion. Its ratio to GDP will increase from 105% to 113.9%.
Debt repayment and servicing are allocated 15.1% of all state budget expenditures — UAH 1.2 trillion. As of July 2026, nearly 80% of the debt was denominated in foreign currency. The depreciation of the hryvnia beyond the projected level creates a risk of an increase in the debt and the costs of its repayment and servicing.
Recommendations of the Accounting Chamber
Based on the results of its examination of the 2027 State Budget, the Accounting Chamber recommends that, during the finalization of the draft State Budget of Ukraine for 2027:
- clarify and provide additional justification for the sources of budget financing, in particular external borrowing;
- take into account the existing reserves for increasing certain state budget revenues;
- assess the adequacy of the expenditures envisaged for the security and defense sector;
- eliminate legal inconsistencies.
The conclusions and proposals of the Accounting Chamber, as noted, have been submitted to the Verkhovna Rada of Ukraine for consideration during the review of the draft Law of Ukraine “On the State Budget of Ukraine for 2027.”
We remind you
The 2027 Budget draft envisages a deficit of 15% of GDP and debt exceeding 110% of GDP. UAH 4.885 trillion is planned to be allocated to security and defense.
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