6 Jun 2024 21:43

Ukraine had state budget deficit of 30% of spending in 5M as external aid decreased

MOSCOW. June 6 (Interfax) - Ukrainian state budget revenue was UAH 1.075 trillion and spending UAH 1.545 trillion in January-May 2024, Ukrainian media reported, quoting a Finance Ministry statement, which referred to preliminary State Treasury data.

There was a budget deficit of UAH 469.7 billion or 30.4% of spending, compared with 26.3% in January-April and 23.6% in January-March.

The budget's General Fund, which receives taxes and other dues and finances the main spending items, had revenue of UAH 775.4 billion in 5M, while spending was UAH 1.257 trillion.

State budget spending grew 9.7% with General Fund spending up 10% to UAH 80.2 billion. Revenue rose 1.3%, with General Fund revenue up 5.4%. The General Fund received UAH 225 billion in international grants in 5M 2023 but just UAH 40.3 billion this year.

General Fund spending rose to UAH 311.6 billion in May from UAH 253.4 billion in April and UAH 268 billion in March, but revenue fell to UAH 151.8 billion from UAH 154.6 billion in April and UAH 164.3 billion in March.

General Fund revenue was UAH 184 billion and spending UAH 277.7 billion in May 2023.

Including the Special Fund which is of a designated nature, state budget spending increased to UAH 396.9 billion in May from UAH 308.5 billion in April and UAH 347.1 billion in March, while revenues amounted to UAH 229.2 billion, compared to UAH 203.5 billion in April and UAH 242.8 billion in March.

Actual government borrowing to the General Fund fell to UAH 47.9 billion in May from UAH 90.5 billion in April and a record UAH 389.9 billion in March, with just UAH borrowed from abroad. Borrowing from the placement of government bonds was UAH 46.2 billion in May, up from UAH 27 billion in April, with just UAH 4.9 billion or the equivalent of 113.6 million euros in foreign currency.

Public debt repayment amounted to UAH 55 billion in May, up from UAH 31.4 billion in April, and servicing to UAH 37.2 billion from UAH 20.6 billion.

Borrowing was UAH 612 billion in 5M 2024, principal debt repayment UAH 201.7 billion or 8.5% below target, and servicing UAH 101.7 billion or 8.4% 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.