Prime Minister of Ukraine Serhii Koretskyi said that due to Russian attacks tax revenues will be approximately $1.5 billion lower than forecast by the end of the year.
Need for external financing for 2027 exceeds $52 billion
“For 2027 it exceeds $52 billion. Almost $20 billion has already been clearly identified within agreements with the European Union (EU), the International Monetary Fund (IMF) and Japan, we need to mobilise a further $32.6 billion (€30 billion). The availability of these funds determines the country’s defence capability, payment of pensions, and support for hospitals and businesses,” the head of government said.
The government discussed finding the required funds with representatives of the World Bank, the International Monetary Fund (IMF), the European Union (EU) and the Group of Seven (G7) countries. Koretskyi noted that securing these resources is essential for financing key state expenditures.
Budget spending on defence will reach almost 44% of GDP
According to Koretskyi, in 2027 Ukraine’s budgetary spending on defence and security will amount to almost 44% of GDP. In addition, the country needs extra resources for defence requirements.
The off-budget requirement of the Armed Forces of Ukraine is estimated at $45 billion (€40 billion). “Ukraine continues to do its part. This week the government itself must approve all necessary decisions to continue financing, and parliament must consider the bills envisaged by the support programmes of the IMF, the World Bank and the EU,” Koretskyi added.
Destruction of enterprises is causing tax shortfalls
Koretskyi emphasised that Russia systematically attacks critical infrastructure, businesses, production facilities and civilian objects, and that because of the destruction and halting of enterprises’ operations tax revenues will be approximately $1.5 billion lower than forecast by the end of the year. This adjusts the expected indicators of state budget revenues.
Earlier, Finance Minister Serhii Marchenko said that the projected tax shortfall for 2026 of 70 billion hryvnia is linked to the destruction of businesses, logistics, metallurgy and the blocking of ports. According to Dragon Capital’s estimate, the need for additional external financing for the 2027 budget will be $30−35 billion.
