Ukraine had state budget deficit of 26% of spending in 4M

MOSCOW. May 6 (Interfax) - Ukrainian state budget revenue was UAH 845.6 billion and spending UAH 1.148 trillion in January-April 2024, Ukrainian media reported, quoting a Finance Ministry statement, which referred to preliminary State Treasury data.

There was a budget deficit of UAH 302 billion or 26.3% of spending.

The budget's General Fund, which receives taxes and other dues and finances the main spending items, had revenue of UAH 623.5 billion in 4M, while spending was UAH 945.4 billion.

State budget spending grew 10% or UAH 104.4 billion compared with a year previously, with General Fund spending up 9.3% to UAH 80.2 billion. Revenue rose 6.5% or UAH 51.5 billion, with General Fund revenue up as much as 25.5% to UAH 140.4 billion following receipt of all Highway Fund money.

State budget spending fell to UAH 308.5 billion in April from UAH 347.1 billion in March, and revenue to UAH 203.5 billion from UAH 242.8 billion, with General Fund spending falling to UAH 253.4 billion from UAH 268 billion and revenue to UAH 154.6 billion from UAH 164.3 billion.

The Finance Ministry again omitted data about the state budget deficit, however, it follows from the materials that with the improvement of external financing to a two-year high in March, it was possible in April to finance spending, which exceeded revenue by approximately UAH 100 billion, for the second straight month.

General Fund revenue was UAH 162.8 billion and spending UAH 229.7 billion in April 2023.

Value-added tax revenue from goods produced in Ukraine came to UAH 23.2 billion in April, up from UAH 18.5 billion in March, and VAT refunds rose to UAH 12 billion from UAH 11.1 billion.

Import VAT raised another UAH 39.3 billion for the budget in April, compared with UAH 40.1 billion in March; personal income tax and military tax rose to UAH 16.8 billion from UAH 16 billion; and subsoil use rent to UAH 5.3 billion from UAH 2.2 billion. Excise tax revenue grew to UAH 17.3 billion from UAH 14.5 billion and revenue from import and export duties fell to UAH 4 billion from UAH 4.3 billion.

Corporate profit tax fell to UAH 3.2 billion from UAH 60.1 billion, but the National Bank transferred UAH 38.6 billion from its own profit and international grants added another UAH 2.7 billion.

Actual government borrowing to the General Fund fell to UAH 90.5 billion in April from a record UAH 389.9 billion in March. Borrowing from the placement of government bonds rose fell to UAH 27 billion from UAH 44.3 billion, with just UAH 1.8 billion or the equivalent of 42.3 million euros in foreign currency.

Public debt repayment amounted to UAH 31.4 billion and servicing to UAH 20.6 billion in April.

Borrowing was UAH 564.1 billion or 3.5% below target in 4M 2024, principal debt repayment UAH 146.7 billion or 9.1% below target, and servicing UAH 64.5 billion or 1.9% below target.

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.

Budget revenue was UAH 2.67 trillion in 2023, according to preliminary data, including UAH 0.43 trillion of assistance. Spending exceeded UAH 4 trillion and the deficit was UAH 1.33 trillion at an average exchange rate around UAH 36.6/$1.