Ukraine projects $37 billion budget deficit and rising public debt

Ukraine's 2027 draft state budget outlines a significant fiscal challenge, projecting a budget deficit of $37 billion and a total public debt rising to $276 billion.

According to budget annexes, the government expects to spend approximately $10.6 billion in 2027 solely on interest and commissions for existing public debt, a figure that does not include principal repayments. Additionally, $470 million is earmarked for fulfilling loan obligations obtained under state guarantees.

Military expenditures are expected to be a primary driver of the budget, with Prime Minister Sergei Koretsky stating that nearly 44% of the GDP—equivalent to $109 billion—will be allocated to the needs of the Army. President Volodymyr Zelenskyy has previously warned of a 'cosmic deficit,' noting that the country is working with the European Commission to find solutions as primary revenue sources are depleted.