The Verkhovna Rada Budget Committee recommended the draft 2027 State Budget for its first reading: what changes are proposed

The Verkhovna Rada Committee on Budget Issues recommended that parliament adopt the draft State Budget of Ukraine for 2027 in the first reading. On October 21, this was reported by Budget Committee Chair Roksolana Pidlasa, according to UNN.

In total, members of parliament processed more than 5.2 thousand amendments and took into account 90 budget conclusions.

Details 

According to her, while preparing the document, lawmakers considered 5,236 amendments, held two working groups and a nine-hour committee meeting. The Verkhovna Rada is expected to consider the draft state budget in the first reading on or around October 28.

Changes in defense funding

Funding for the defense sector remains one of the priorities. The Budget Committee instructed the government to work on the issue of increasing servic members' financial allowances before the second reading. In addition, MPs propose considering doubling the state guarantees for defense industry enterprises, to UAH 60 billion.

The proposals also include increasing spending on the construction and purchase of housing for Armed Forces of Ukraine servicemen and creating a separate subvention for local budgets to ensure the operation of centers preparing citizens for national resistance.

Education and healthcare

In the education sector, the committee provided for an additional almost UAH 27 million to pay teachers who administer the national multi-subject test.  It also proposed  increasing funding for the scientific activities of institutions of the National Academy of Sciences of Ukraine by UAH 700 million and allocating UAH 10 million to the Ukrainian Leadership Academy.

The government is to consider the possibility of additional funding for equipping shelters in schools and kindergartens, ensuring the energy independence of educational institutions, and implementing a pilot project to reform teachers' pay.

In the healthcare sector, the committee proposed adding UAH 150 million to purchase medicines for treating autoimmune diseases of the nervous system and neuromuscular diseases. In addition,  the Cabinet of Ministers was instructed to find additional funds to provide medicines to patients with achondroplasia and Duchenne muscular dystrophy, as well as for osseointegrative prosthetics for veterans.

Funding for communities and support for internally displaced persons

Among the Budget Committee's proposals is consideration of the issue of additionally crediting 4% of personal income tax to the budgets of territorial communities, excluding military personal income tax. At the same time, implementing such an initiative would lead to a UAH 18.2 billion reduction in state budget revenues, so the government must identify sources to compensate for the losses.

At the same time, lawmakers propose considering the possibility of retaining the reverse grant in local budgets, which would require an additional UAH 19.2 billion in resources.

Separately, the committee wants to increase funding for the State Regional Development Fund by at least UAH 2 billion.

Considerable attention was devoted to housing programs for internally displaced persons. In particular, there is a proposal to direct the relevant funds toward purchasing ready-to-occupy housing, converting buildings into residential premises, creating social rental housing, and providing concessional loans.

It is proposed that combatants and persons with war-related disabilities be given priority in the provision of housing.

Business support and a review of the "National Cashback"

In the economic sector, the committee proposed allocating an additional UAH 100 million for humanitarian demining.

At the same time, lawmakers recommend prohibiting the financing of payments under the "National Cashback" program from the budget program supporting the development of production and entrepreneurship, for which UAH 9.4 billion has been earmarked. According to Pidlasa, these funds should be directed directly toward business support. In addition, the government is being asked to assess the advisability of continuing to finance the "National Cashback" with public funds.

Among other proposals is permission to hold large-scale privatization auctions in 2027 with a reduction in the starting price, which could facilitate the sale of loss-making state assets, including the Odesa Portside Plant and "Sumykhimprom".

The committee also proposes increasing compensation to agricultural producers for the construction and reconstruction of livestock farms from 50% to 75% of the cost of the work.

In addition, the government should consider expanding war-risk insurance, supporting farmers in frontline regions, and compensating the costs of transporting agricultural products from dangerous areas.

Social Protection and Public Administration

In the area of social policy, the committee proposes conducting an inventory of legislation that links the amounts of benefits, salaries, and fines to the subsistence minimum and the minimum wage. This should create the conditions for revising the relevant indicators without automatically increasing all related budget expenditures.

In addition, the government is advised to consider increasing funding for Ukraine's foreign diplomatic missions and allocating funds to repair customs scanning equipment.

Recall

As reported by UNN, the Verkhovna Rada's Budget Committee supported raising salaries for military personnel.