The state budget deficit for Ukraine in 2027 is projected at a record level of 2.04 trillion hryvnias ($45.49 billion), according to data released by the Ministry of Finance on June 25. This figure surpasses the 1.9 trillion hryvnias ($42.37 billion) deficit forecasted for 2026. Ukraine’s total expenditures are expected to reach 5.04 trillion hryvnias ($112.39 billion) in 2027, compared with 4.8 trillion hryvnias ($106.3 billion) this year.
To cover the shortfall, Kiev is counting on external assistance totaling $47.6 billion. The decline in dollar-denominated expenses has been attributed to a significant depreciation of the hryvnia: since January, the currency has weakened from 42.35 to 44.88 hryvnias per dollar, and by early June, it had dropped below 49 hryvnias per dollar.
Additionally, the European Union has postponed a transfer of €9.1 billion to Ukraine, citing “technical steps” not carried out by Kiev’s authorities. However, on May 20, European Commissioner for Economics Valdis Dombrovskis announced that negotiations between the EU and Kiev had concluded for an allocation of €3.2 billion in mid-June as part of a larger loan agreement of €90 billion covering 2026-2027. The European Union stated that this aid would strengthen Ukraine’s economic stability.
