Ukrainian state budget's revenues, expenditures grow in Jan-July 2025 - Finance Ministry

MOSCOW. Aug 6 (Interfax) - A total of UAH 2.09 trillion in taxes, fees and mandatory payments was transferred to the general and special funds of Ukraine's state budget in January-July 2025, which is 41% more than in the first seven months of 2024, while cash expenditures in the reporting period stood at UAH 2.78 trillion, a 24% increase year-on-year.

The general fund's revenues increased 42% to UAH 1.47 trillion, while its expenditures grew 20% to UAH 2.17 trillion in January-July 2025, Ukrainian media said, citing the State Treasury Service's latest data published on the Finance Ministry's website on Tuesday.

After the military tax was raised from 1.5% to 5% and enterprises were ordered to meet the salary requirements starting from UAH 20,000, the second largest source of revenue in January-July 2025 was the personal income tax and the military tax, accounting for UAH 200.1 billion versus UAH 117 billion last year.

Other major sources of revenue included collections from VAT on goods imported into Ukraine's customs territory - UAH 294.4 billion (UAH 262.3 billion in January-July 2024), collections from VAT on goods manufactured in Ukraine - UAH 183.1 billion, including UAH 101.5 billion VAT refund (UAH 153.3 billion, including UAH 83.6 billion VAT refund in January-July 2024), corporate income tax - UAH 160.5 billion (UAH 153 billion in January-July 2024), and excise tax - UAH 159.6 billion (UAH 109.7 billion in January-July 2024).

State-owned companies' dividend and net profit contributions stood at UAH 60.8 billion in January-July 2025 (UAH 64.6 billion in January-July 2024), import and export duties totaled UAH 30.1 billion (UAH 27.6 billion), and the rent fee for subsoil use stood at UAH 22 billion (UAH 28 billion).

The National Bank of Ukraine's profit added another UAH 84.2 billion (UAH 38.6 billion in January-July 2024) to the budget, the Finance Ministry said.

The Extraordinary Revenue Acceleration (ERA) for Ukraine mechanism, launched by the G7 at the end of last year, increased the amount of international aid received by the Ukrainian budget as grants to UAH 210.9 billion in January-July 2025 versus UAH 40.3 billion in the same period of last year, though Ukraine did not receive this aid in July 2025 and in July 2024.

Collections from the unified insurance payments to the Pension Fund and the social insurance funds rose by 22.4% to UAH 369.4 billion in January-July 2025, including by 20.4% to UAH 54.8 billion in July alone.

According to the ministry, government borrowings to the state budget's general fund stood at UAH 998 billion in January-July 2025 (UAH 873.2 billion in January-July 2024), or 93.8% of the amount planned for this period. Of this figure, UAH 302.9 billion (UAH 279.2 billion in January-July 2024) was earned through the placement of domestic government bonds on the internal market, including UAH 61.8 billion in foreign currency, i.e. $853.8 million and 557.7 million euros. Military bond issues also brought UAH 140.3 billion.

Ukraine received around $16.7 billion, or UAH 695 billion (UAH 594 billion), from external sources in January-July 2025, including around $12.1 billion from the ERA mechanism, which amounts up to $50 billion, the ministry said.

In addition, Ukraine received another 3.1 billion euros from the European Union under the Ukraine Facility program, $0.96 billion from the International Monetary Fund, and $0.26 billion from the World Bank under the Transforming Healthcare through Reform and Investments in Efficiency (THRIVE) project, the Delivering Resilient Infrastructure in Vulnerable Environments (DRIVE) project and the Social Safety Nets Modernization project.

A total of UAH 370.5 billion went to repaying Ukraine's public debt in January-July 2025 (UAH 259.1 billion), or 96.7% of the amount planned for this period. Debt service payments stood at UAH 198.5 billion, or 72.6% of the planned amount.

As reported, the state budget approved for 2025 targeted revenue of UAH 2.327 trillion, including UAH 2.133 trillion to the general fund, excluding grants and international aid, and UAH 3.929 billion of expenditure with UAH 3.592 billion by the general fund. However, the Ukrainian Verkhovna Rada increased the 2025 state budget's expenditures by UAH 400.5 billion and revenues by UAH 147.5 billion last week in line with the government's proposal.

The 2024 state budget's revenues totaled UAH 3.121 trillion, which is 16.8%, or by UAH 448 billion, more than in the 2023 budget. The general fund's revenues increased 30.9%, or by UAH 513.9 billion, to UAH 2.177 trillion. International financial assistance provided as grants stood at UAH 453.6 billion versus UAH 433.9 billion in 2023.

The expenditures of the 2024 state budget increased 11.6% year-on-year, or by UAH 464.5 billion, to UAH 4.479 trillion. In particular, the general fund's expenditures rose 15%, or by UAH 455 billion, to UAH 3.489 trillion.