Ukrainian state budget deficit widened in March as external financing grew, reached 23.6% of spending in Q1

MOSCOW. April 4 (Interfax) - Ukrainian state budget revenue was UAH 641.1 billion and spending UAH 839.1 billion in Q1 2023, Ukrainian media reported, quoting a Finance Ministry statement, which referred to preliminary State Treasury data.

There was a budget deficit of UAH 198 billion or 23.6% of spending.

The MinFin said the budget's General Fund, which receives taxes and other dues and finances the main spending items, had revenue of UAH 468.9 billion in Q1 compared with UAH 388.8 billion a year previously, while spending was UAH 692 billion compared with UAH 635.5 billion.

General Fund revenue fell to UAH 164.3 billion in March from UAH 188.6 billion in February, and spending to UAH 268 billion from UAH 274.5 billion - revenue and spending were UAH 152.2 billion and UAH 225.2 billion, respectively, in March 2023.

Including the Special Fund, state budget revenues as a whole decreased to UAH 242.8 billion in March from UAH 243.6 billion a month earlier, and sending increased to UAH 347.1 billion from UAH 322.7 billion.

The Finance Ministry omitted data about the state budget deficit from its traditional press release, however, it follows from the materials that with the improvement of external financing in March, the deficit began to grow and exceeded levels for January-February and March of last year, when it amounted to UAH 59.2 billion.

Actual government borrowing to the General Fund soared to UAH 389.99 billion in March from UAH 40.4 billion in February and UAH 43.3 billion in January.

Borrowing from the placement of government bonds rose to UAH 44.3 billion in March from UAH 40 billion in February.

Public debt repayment amounted to UAH 47.6 billion and servicing to UAH 8.3 billion.

The budget received a record $9 billion of external aid in March, it has been reported.

The 2024 budget targets a deficit of UAH 1.57 trillion or 20.6% of forecast GDP. Budget revenues are expected to total UAH 1.77 trillion, not including potential financial assistance, and spending UAH 3.36 trillion at an average exchange rate of UAH 40.7/$1.