The 2027 draft budget includes a special fund to insure businesses against Russian strikes
Prime Minister Serhii Koretskyi stated that a 1% Value Added Tax increase in the 2027 budget is necessary to fund business insurance. The state plans to accumulate approximately 1 billion dollars to compensate for damages caused by Russian attacks. This was reported by RBC-Ukraine (Юлія Капітонова), according to the portal PromPolitInform.
According to the head of government, implementing a program to insure enterprises against war risks requires significant financial resources. This will allow companies to receive compensation for property damaged by enemy strikes more quickly.
To fund the special account provided in the state budget, authorities are considering increasing the VAT rate by 1%. Koretskyi noted that due to the lack of other alternative revenue sources, the Cabinet of Ministers is forced to take this step.
Entrepreneurship support mechanism
Currently, state support for businesses is based on soft loan programs. The government continues to compensate for the difference between market and preferential interest rates, utilizing both budget funds and grant assistance from international partners.
Insurance against war threats will become an additional tool to increase economic resilience. The expected amount for these purposes is approximately 1 billion dollars, which will be collected in a special account.
2027 budget initiatives
The current draft of the 2027 budget already contains the corresponding legislative proposals. The Prime Minister emphasized that a dialogue is ongoing with parliamentarians and business representatives regarding the final approval of these changes.
While the tax increase is recognized as an unpopular measure, the government emphasizes its importance for the functioning of the compensation mechanism. The process of discussing the details of the special fund’s financing with all stakeholders continues.
Photo: RBC-Ukraine
