This Resolution of the Cabinet of Ministers of Ukraine No. 793 dated June 17, 2026, approves the Budget Declaration for 2027\u20132029. The document defines the strategic objectives of fiscal policy, projected macroeconomic indicators, and expenditure ceilings for the medium term. The Declaration serves as a foundation for the formulation of draft state budgets for the respective years, ensuring macroeconomic stability and the fulfillment of international obligations under the conditions of martial law.<\/p>\n
**Structure and Main Provisions:**
\nThe document consists of a general part, an analysis of macroeconomic scenarios, revenue and expenditure forecasts, and a breakdown of policies by key areas (defense, social protection, education, medicine, infrastructure, etc.). Compared to previous versions, the Declaration emphasizes “fiscal consolidation”\u2014a gradual reduction of the budget deficit (from 17.7% of GDP in 2027 to 5.5% in 2029) and a transition from short-term stabilization to strategic recovery based on the “Build Back Better” principle.<\/p>\n
**Key Provisions for Implementation:**
\n1. **Prioritization of Defense:** The security and defense sector remains the primary recipient of budget funds. Two scenarios are provided: a baseline and an alternative (in the event of a prolonged active phase of the war), which allows for flexible expenditure adjustments.
\n2. **Tax Changes:** The Declaration announces the alignment of excise tax rates with EU standards, the reform of the Personal Income Tax (PIT), and the introduction of new mechanisms for taxing income from digital platforms.
\n3. **Social Policy:** A transition to targeted assistance, verification of payments, and a gradual reform of the pension system are planned with the aim of ensuring the deficit-free status of the Pension Fund.
\n4. **Investments:** 18 key sectors for public investment have been identified (including energy, transport, and digitalization), based on the Ukraine Plan (Ukraine Facility).
\n5. **Debt Policy:** The main emphasis is placed on attracting long-term concessional financing from international partners (IMF, EU, World Bank) to cover the deficit and refinance debt.<\/p>\n