The decision was taken at a Cabinet meeting on Thursday, Censor.NET correspondent reports.
The state budget revenue is projected at 876.9 billion hryvnia (about $34 billion) in 2017, which is 17 percent more than in 2016 (749 billion hryvnia).
The largest share of revenue is expected to be produced by the value added tax - 281.7 billion hryvnia, the personal income tax - 150.6 billion hryvnia, and the excise tax - 108.1 billion hryvnia.
The state budget-2017 shortfall is expected to reach 3 percent of GDP - 77.5 billion hryvnia.
129 billion hryvnia will be allocated for country's defense needs, which is 14.5 billion hryvnia more than in 2016.
The government also plans to increase the minimum monthly wage by 10.1 percent - to 1,762 hryvnia (about $66).
The draft budget also provides for the scholarship fund increase by 576 million hryvnia - to 5.8 billion hryvnia.
5.5 billion hryvnia will be allocated to support smallholder and medium-scale farming. In particular, the funds will be provided for the modernization and mechanization of small farms.
The government is also going to spend 1.8 billion hryvnia to restructure the state owned mines and support the miners.
Related materials: Budget 2017