The Cabinet of Ministers of Ukraine officially approved and submitted to the Verkhovna Rada the draft Law of Ukraine "On the State Budget for 2027" ( 16000 ). dev.ua analyzed expenditures on technology, defense and space in the state budget, which has already been called the largest in the history of Ukraine.
The Cabinet of Ministers of Ukraine officially approved and submitted to the Verkhovna Rada the draft Law of Ukraine "On the State Budget for 2027" ( 16000 ). dev.ua analyzed expenditures on technology, defense and space in the state budget, which has already been called the largest in the history of Ukraine.
The revenues of the draft state budget for 2027 are planned at 5 trillion 648 billion hryvnias, which is 8.7% (or 452.1 billion hryvnias) higher than the adjusted plan of the previous year.
At the same time, the total volume of expenditures will increase by 13.5% and will amount to 7 trillion 272 billion hryvnias, an increase of 864.9 billion hryvnias compared to 2026. Of these, the lion's share — 66.8% — is directed directly to the security and defense sector.
To cover the deficit, Ukraine's need for international support will reach $52.6 billion, which is planned to be attracted from the European Union, the International Monetary Fund, the World Bank, the United Kingdom, and the G7 countries within the framework of the ERA financial mechanism.
Financing of the security and defense sector in 2027 will reach 4 trillion 885 billion hryvnias, which is 43.8% of GDP. This is 517.9 billion hryvnias (+11.9%) more than the approved plan for 2026 with changes. The volume of security expenditures is 66.8% of all budget expenditures.
Structure of defense spending:
UAH 1 trillion 791.7 billion — remuneration of military personnel with accruals (+ UAH 337.5 billion);
UAH 2 trillion 298.5 billion — purchase, repair and production of weapons and military equipment (+ UAH 1.4 billion);
UAH 499.9 billion — other current expenditures (+ UAH 127.7 billion);
UAH 264.9 billion — reserve fund (+ UAH 51.3 billion);
UAH 30 billion — state guarantees for the purchase of weapons and equipment.
It is worth considering that 35.7% (1.73 trillion UAH) of defense funds are European resources for weapons and equipment. They are recorded in a special fund and can be received in kind.
An additional source of weapons procurement for the Armed Forces of Ukraine will be funds collected as a result of cases by the BEB, NABU, and SBI, proceeds from the sale of ARMA assets, fines from the State Audit Service and the Antimonopoly Committee of Ukraine, as well as fees for weapons export permits.
Separately, UAH 10.1 billion (+ UAH 2.7 billion) has been allocated for the Innovation Development Fund. These funds will be directed to the Brave1 defense technology cluster, the development of new models of military equipment, robotic complexes, unmanned systems, and research into special technologies.
The draft state budget for 2027 provides the Ministry of Digital Transformation of Ukraine with UAH 2,708.1 million from the general fund for digitalization.
Distribution of funds:
UAH 1,650.9 million — expanding the functionality of the “Diya Portal” and ensuring the stable operation of state electronic information resources;
UAH 640 million — implementation of public investment projects within the framework of the National Informatization Program;
UAH 302.2 million — operation and development of the educational mobile application "Mriya" within the structure of "Portal Diya";
UAH 115 million — increasing the efficiency of state regulation in the field of gambling and lotteries.
The total expenditures of the Ministry of Digital Affairs in the draft budget will amount to UAH 10,086.5 million.
Of these, the lion's share is directed towards innovative and technological solutions for the front:
UAH 7,417.3 million — provision by the Innovation Development Fund of support for technological and defense projects (BRAVE1);
UAH 562.7 million (UAH 562,669.2 thousand) — development and rapid implementation of special innovative technologies in the security and defense sector.
This will allow providing long-term grant support to developers of defense-tech solutions through special programs and Brave1 competitions, as well as launching international competitions on the terms of parity co-financing of foreign investors involved. In addition, the funds invested will be directed to the purchase of new prototypes of equipment and special equipment for the needs of the Armed Forces of Ukraine, which will allow conducting full-fledged field tests and research of robotic and unmanned systems.
You can see how the distribution of expenditures and the provision of loans for the Ministry of Digital Economy for 2025–2027 changed in the table below.
Expenditures on scientific and scientific-technical activities are planned to amount to UAH 24,219.6 million (of which UAH 19,691.3 million is from the general fund). Funding will focus on practical developments and innovations necessary for the state.
Main areas of financing:
UAH 13,009.8 million — research by the National Academy of Sciences (NAS) and industry academies (in particular, UAH 1,004.7 million — for priority developments at the international and national level);
UAH 7,916.4 million — support for research in higher education institutions and scientific institutions based on the results of state certification and the formation of a state order;
UAH 959.6 million — grant support for scientific research through the National Research Foundation of Ukraine;
UAH 940.5 million — ensuring activities and conducting scientific research in Antarctica (Akademik Vernadsky Station).
The general fund of the state budget provides funding for two key areas for civil and defense space programs:
UAH 531.1 million — reception and processing of special/service information from spacecraft, monitoring of the seismic situation and geophysical phenomena on the planet, as well as quality control of the manufacture and installation of rocket and space equipment;
UAH 380 million — implementation of research and development and scientific work in the space sector in the interests of national security and defense and the development of international cooperation.
You can see how the distribution of expenditures for the State Space Agency changed for 2025–2027 in the table below.
After the Government submits the draft Law No. 16000 to the Verkhovna Rada of Ukraine, the parliamentary stage of the budget process begins. At the first stage, which lasts until October 1, people's deputies and specialized committees formulate and submit their proposals and amendments to the document. In the first half of October, the Budget Committee of the Verkhovna Rada processes all received legal materials and prepares a final conclusion, after which at the end of October the draft State Budget-2027 is submitted to the parliament for consideration in the first reading during a plenary session.
