Roman Yermolychev: Funding priorities include defense, wages, and social payments — we're working to secure external support for the State Budget

Postponing part of this year's capital spending to year-end and preparing the 2027 State Budget were the key issues outlined by First Deputy Minister of Finance Roman Yermolychev at a September review of the Ukrainian economy hosted by the Centre for Economic Strategy (CES).

The discussion also involved Roksolana Pidlasa, Chair of the Verkhovna Rada's Budget Committee; Volodymyr Lepushynskyi, Deputy Governor of the National Bank of Ukraine; and representatives of international financial institutions, businesses, and European institutions.

On the 2026 budget situation, Roman Yermolychev stressed that funding for defense, public sector wages, pensions, and social payments remained the top priority.

"Due to the uneven flow of international financing, part of this year's capital spending has been pushed back to December. At the same time, funding for defense, wages, pensions, and social payments continues to be prioritized," the First Deputy Minister said.

As a result of delays in international financing, around UAH 39 billion in capital spending accumulated between January and September has been shifted to December. This doesn't mean the programs are being cancelled — only that their funding timelines are being adjusted.

Funding for certain expenditures in October and November will depend on available resources, Ukraine's fulfillment of its commitments, and the inflow of external support.

Particular attention was also given to drafting the 2027 State Budget. The draft envisions UAH 7.272 trillion in expenditures and UAH 5.648 trillion in revenues. Spending on the security and defense sector is set at UAH 4.885 trillion — UAH 517.9 billion more than the revised 2026 plan. This figure includes a UAH 264.9 billion reserve within the security and defense allocation.

Ukraine's need for external budget financing in 2027 stands at USD 52.6 billion. Of this, around USD 20 billion is already confirmed or expected under international support programs, while the remaining USD 32.6 billion still requires confirmation.

"The draft 2027 State Budget was developed based on the Budget Declaration, the current macroeconomic forecast, and present-day realities. Securing the necessary volume of international financial support remains one of our key tasks. At the same time, we're working to strengthen our own revenue base — primarily through de-shadowing the economy and broadening the tax base," Roman Yermolychev said.

Participants also focused on further steps to ensure the sustainability of public finances and the timely funding of priority spending.

As a reminder, the Cabinet of Ministers of Ukraine has approved the draft Law "On the State Budget for 2027." The Ministry of Finance prepared the document on schedule; it is balanced and ensures predictable funding for the state's priorities.