On June 17, the Ukrainian Cabinet approved a Budget Declaration outlining plans for 2027 to 2029, emphasizing a cautious increase in social standards. The declaration anticipates a gradual reduction in inflation, an increase in the average salary exceeding 44,000 UAH, and accelerated GDP growth.
Prime Minister Yulia Svyrydenko shared this update via Telegram, noting that the minimum wage is set to rise at a pace that outstrips inflation next year. Additionally, the subsistence minimum is projected to increase by the inflation rate plus two percentage points over the three-year period.
Svyrydenko also highlighted the government’s commitment to supporting veterans and individuals affected by the ongoing conflict with Russia. Efforts will also focus on creating conditions for the return of displaced migrants and rebuilding human capital.
“The Budget Declaration is aligned with international partners and Ukraine’s commitments under external financial support programs. It is developed based on a baseline scenario that anticipates improved security conditions starting in 2027, while also including a resilience scenario for prolonged active combat phases,” Svyrydenko stated.
The government forecasts a real GDP growth acceleration of 4.5% next year, followed by 5.3% in 2028 and 6.7% in 2029. Furthermore, the average salary is expected to rise from 35,010 UAH to 44,083 UAH, while inflation is projected to decrease from 8.9% to 5.1%.
“This is a balanced and consistent budget policy of the Government, laying the foundation for macroeconomic stability and sustainable economic recovery,” the Prime Minister added.
The Ukrainian government has approved a Budget Declaration for 2027-2029, focusing on social standards, economic growth, and support for those affected by the conflict. Key projections include rising wages and decreasing inflation rates.