Cabinet Approves Budget Declaration Through 2029: Dollar Rate, Inflation, and Salary Projections.

Financial and Economic Justification for the Budget Declaration

According to Espreso.tv: On June 17, the Cabinet of Ministers approved a budget declaration covering 2027–2029, with key fiscal indicators now made public by lawmaker Yaroslav Zheleznyak. The document outlines a downward revision of GDP growth: from 5% to 4.5% in 2027, and from 5.7% to 5.3% in 2028.

The budget deficit is projected at 17.7% in 2027, narrowing to 5.5% by 2029. Inflation is expected to range between 7.1% and 9.3% in 2027, and between 5.6% and 7.5% in 2028. As for the U.S. dollar exchange rate, it is forecast to reach 47.1 hryvnias in 2027, 49.1 hryvnias in 2028, and 50.7 hryvnias in 2029.

Future Plans

The declaration also includes employment and wage targets:

• The number of employed people in the economy is expected to rise from 12.8 million in 2026 to 13.4 million by 2029;
• The minimum wage will increase from 8,647 hryvnias in 2026 to 11,114 hryvnias by 2029;
• The subsistence minimum is set at 3,559 hryvnias in 2027, 3,876 hryvnias in 2028, and 4,151 hryvnias in 2029.

Government spending on national security and defense is planned at 2.76 trillion hryvnias in 2027, 2.28 trillion in 2028, and 1.69 trillion in 2029. Education funding for 2027 is set at 298 billion hryvnias, healthcare at 250.4 billion, science at 20.3 billion, and culture and media at 10.1 billion.

Overall, the budget declaration for 2027–2029 highlights the main priorities and challenges the country will face in the coming years, particularly in economic, social, and security policy.

The budget declaration for 2027–2029 reflects not only financial forecasts but also the government's strategic decisions regarding the country's further development.

Amid economic headwinds such as lower GDP and a high budget deficit, attention to social spending is crucial as it directly impacts public welfare. The planned increases in the minimum wage and employment levels signal the government's intent to maintain social stability. At the same time, the substantial allocations for security and defense underscore the need to safeguard national sovereignty in the face of ongoing threats.