On 28 October, the Verkhovna Rada adopted in first reading the draft State Budget of Ukraine for 2027. Deputies supported the proposal to review military pay and to limit funding for the "National Cashback" programme. At the same time, a number of amendments on civil servants' salaries, business support and additional budget expenditures failed to get the required number of votes.

MP Yaroslav Zheleznyak reported the voting results. 239 MPs voted to pass the budget in first reading.

The day before, on 27 October, the Verkhovna Rada supported in principle the draft resolution on budget conclusions. The document was prepared by the parliamentary Budget Committee, which processed 5,236 MP amendments and formulated 90 proposals on their basis.

Increase in military pay and limitation of cashback funding

One of the main outcomes of the review was support for Amendment No.1279 on increasing military pay. It was confirmed by 304 MPs.

The amendment instructs the government to work on raising military pay during preparation of the budget for second reading.

However, this decision does not mean an actual pay rise yet. The specific amounts and sources of funding must be determined by the Cabinet of Ministers during further finalisation of the document.

Parliament also supported the amendment to limit budget funding for the "National Cashback" programme. 284 deputies voted in favour.

During preparation of budget conclusions, the committee proposed to prohibit using funds from the programme to support production and entrepreneurship development, for which the government draft provides UAH 9.4 billion, for cashback payments.

Confirmation of the amendment at this stage does not mean immediate termination of the "National Cashback" programme. The final funding mechanisms will depend on the budget version the government prepares for the next reading.

Which amendments did MPs not support?

One of the most discussed was Amendment No.1003, which proposed setting a maximum salary of UAH 80,000 per month in 2027 for employees of authorities, local self-government and budget institutions. Only 157 MPs voted for it, so the proposal was not supported.

Amendment No.1024 on keeping labour costs for authorities' employees at the 2026 level also failed. It got 154 votes.

Parliament also did not confirm Amendment No.1039 on state guarantees for compensation of losses to owners and operators of sea and river vessels in case of damage from Russian aggression. 211 MPs supported it.

Other proposals that did not receive the required number of votes:

  • Additional funding for science. Amendment No.4533 on an increase of UAH 700 million for institutions of the National Academy of Sciences of Ukraine got 189 votes.
  • Support for livestock farming. The proposal to raise the share of state compensation for the cost of building and reconstructing livestock farms from 50% to 75% received 173 votes.
  • Purchase of passenger carriages. The instruction for the government to consider increasing funding for this programme got 211 votes.
  • Regional development. The proposal to consider increasing funding for the State Regional Development Fund received 224 votes.

Failure of these amendments means they did not obtain parliament's support at this stage of the review. This is not equivalent to a complete cessation of funding for the respective areas under other budget programmes.

Key budget 2027 indicators

In the government draft, state budget revenues for next year are set at UAH 5.648 trillion and expenditures at UAH 7.272 trillion.

The biggest priority remains the security and defence sector, for which UAH 4.885 trillion is planned, or 43.8% of projected GDP. This is UAH 517.9 billion more than provided in the 2026 budget as amended.

Meanwhile, Ukraine will need significant international support. According to the Ministry of Finance, the total external financing need for 2027 is USD 52.6 billion.

Further budget procedure

After first reading, the budget draft will be sent to the Cabinet of Ministers for finalisation, taking into account the budget conclusions supported by parliament.

The government must identify opportunities to finance additional expenditures, including higher military pay, and submit an updated version of the document.

According to the preliminary schedule, the second reading and final adoption of the state budget are planned for 23-26 November. Until then, revenue, expenditure and certain programme funding figures may still change.

Based on materials: Yaroslav Zheleznyak, 28 October, Verkhovna Rada Budget Committee, Ministry of Finance of Ukraine