Ukraine pays down over $1.3 bln on state debt in Feb

MOSCOW. March 6 (Interfax) - Ukraine spent UAH 50.2 billion (more than $1.3 billion at the current rate) on paying down government debt and UAH 26.1 billion on servicing government, or respectively 94.9% and 95.5% of the plan, in February, Ukrainian media reported the Finance Ministry as saying in a press release that cited the latest treasury data.

State budget expenditures rose to UAH 322.7 billion in February from UAH 169.3 billion in January, and revenue grew to UAH 243.6 billion from UAH 154.3 billion, the ministry said. The general fund, which collects taxes and levies and finances the main expenditures, increased spending to UAH 274.5 billion in February from UAH 149.5 billion in January, while its revenues rose to UAH 188.6 billion from UAH 149.5 billion. The ministry did not provide data on the state budget deficit.

The revenue growth was driven by profit tax and dividends from state companies, which jumped to UAH 66.8 billion in February from UAH 1.9 billion in January and accounted for over a third of the general fund's total revenues, the ministry said. International aid through grants rose to UAH 31 billion in February from UAH 3.4 billion in January.

Revenue from value-added tax on goods made in Ukraine fell to UAH 15.3 billion in February from UAH 35.1 billion in January, while VAT refunds rose to UAH 11.7 billion from UAH 9.8 billion. Revenue from VAT on imports fell to UAH 32 billion from UAH 37 billion.

Revenues also included UAH 15.9 billion from personal income tax and the military duty (UAH 13 billion in January); UAH 3.7 billion from fees for use of mineral resources (UAH 3 billion); UAH12.6 billion from the excise tax (UAH 12.2 billion); and UAH 3.3 billion from import and export duties (UAH 4.6 billion).

Actual government borrowing for the budget's general fund totaled UAH 40.4 billion in February, compared to UAH 43.3 billion in January. Domestic government bonds raised UAH 40 billion, up from UAH 32 billion in January, including the equivalent of UAH 19.7 billion in foreign currency ($238.4 million and 274.8 million euros).

Ukraine's parliament passed a state budget for 2024 that targets a deficit of UAH 1.57 trillion, or 20.6% of forecast GDP, with revenues of UAH 1.77 trillion (not including possible international aid) and spending of UAH 3.36 trillion. It factors in an average annual exchange rate of UAH 40.70/$1.

State budget revenues totaled UAH 2.67 trillion in 2023, including UAH 430 billion in international grants, while expenditures exceeded UAH 4 trillion, according to the latest data. The deficit was UAH 1.33 trillion, with an average annual exchange rate of about UAH 36.60/$1.

The official exchange rate was UAH 38.31/$1 on March 5.