Ukraine's state budget deficit tops a third of expenditures in Jan-July

MOSCOW. Aug 5 (Interfax) - Ukraine's state budget revenues rose by 0.6% or UAH8.5 billion to UAH1.486 trillion in the first seven months of 2024, while spending grew by 8.7% or UAH180.7 billion to UAH2.248 trillion, the Ukrainian Finance Ministry reported, citing the latest data.

The deficit was therefore UAH761.9 billion in the seven months, or 33.9% of expenditures.

The budget's general fund, which collects taxes, levies and international aid and finances the main expenditures, increased spending by 10.3% or UAH 168.5 billion to UAH1.808 trillion, while its revenues rose by 2.5% or UAH25.5 billion to UAH1.032 trillion.

However, in the first seven months of 2023 the general fund collected UAH317.2 billion in international grant aid, while this year it collected just UAH40.3 billion.

Ukraine's parliament passed a state budget for 2024 that targeted a deficit of UAH1.57 trillion, or 20.6% of forecast GDP, with revenues of UAH1.77 trillion (not including possible international aid) and spending of UAH3.36 trillion. It factors in an average annual exchange rate of UAH40.70/$1.

In July, the government submitted a bill to parliament to increase state budget spending by UAH434.6 billion. The increase is to be financed in part by bond sales to banks in the amount of UAH160.2 billion and the reduction of payments on the state debt by UAH59.8 billion.

State budget revenues totaled UAH2.67 trillion in 2023, including UAH430 billion in international grants, while expenditures exceeded UAH4 trillion. The deficit was UAH1.33 trillion, with an average annual exchange rate of about UAH36.60/$1.

The official exchange rate was UAH41.14/$1 on August 2.