Ukraine posts federal budget deficit totaling 20% of expenditures in H1 2024 - Finance Ministry

MOSCOW. July 8 (Interfax) - Revenues of Ukraine's federal budget totaled nearly UAH 1.544 trillion and expenses totaled around UAH 1.933 trillion for the first half of 2024, Ukrainian media reported, citing the country's Finance Ministry referencing operational data.

Consequently, the federal budget reduced to a deficit of UAH 389.7 billion, or 20.2% of expenses, in January-June of this year.

Specifically, revenues of the general fund of the federal budget [taxes and fees, as well as international aid directed into the general fund, and basic expenses financed from it] totaled UAH 913.4 billion, and expenses totaled nearly UAH 1.544 trillion.

Revenues of Ukraine's federal budget overall increased 1% year-on-year for the reporting period, or by UAH 13.3 billion, in the first half of 2024, while expenditures rose 8.4% year-on-year, or by UAH 149.1 billion.

Accounting for the special fund, namely funds with a specific purpose, overall revenues of the federal budget increased to UAH 240.7 billion in June from UAH 229.2 billion in May, while expenditures decreased to UAH 388.9 billion from UAH 396.9 billion. Revenues of the general fund decreased to UAH 138.0 billion last month from UAH 151.8 billion in May, while expenditures decreased to UAH 286.7 billion from UAH 311.4 billion.

The ministry said that actual government borrowings to the general fund of the federal budget surged to UAH 134.9 billion in June from UAH 47.9 billion in May, including external borrowings owing to the tranche from the EU under the Extended Fund Facility (EFF) Arrangement program that grew to UAH 82 billion from UAH 1.7 billion.

Overall government borrowing totaled UAH 746.9 billion in the first six months of the year, including external borrowings of UAH 504.5 billion, payments to repay the government debt of UAH 259.1 billion, and debt servicing of UAH 132.8 billion.

As reported, the Verkhovna Rada adopted the law on the federal budget of Ukraine for 2024 with a deficit of UAH 1.57 trillion, or 20.6% of projected GDP. Revenues are set at UAH 1.77 trillion, excluding possible grant assistance, and expenses at UAH 3.36 trillion, at an average annual exchange rate of UAH 40.7/$1.

The official exchange rate as on July 8, 2024, is UAH 40.54/$1.