20 Apr 2022 15:21

IMF expects Ukraine's state budget deficit to grow to 17.8% of GDP in 2022, return below 10% from 2027

KYIV. April 20 (Interfax-Ukraine) - Ukraine's state budget will widen to 17.8% of GDP in 2022 from 4% of GDP in 2021, the International Monetary Fund said.

According to the Fiscal Monitor released by the IMF on Wednesday, in subsequent years the deficit will also remain high: 2023 - 13.1% of GDP, 2024 - 11.9% of GDP, 2025-2026 - 10.9-10.8% of GDP.

Only in 2027, according to the IMF's estimates, will the deficit fall below 10% of GDP and amount to 9.3% of GDP.

The IMF said that this generally concerns the public finance sector deficit, which also includes local budgets, social funds and state-owned companies. In recent years this has practically coincided with the state budget deficit, but earlier it was higher due, in particular, to the deficit of NJSC Naftogaz Ukrainy.

The IMF said that Ukraine's primary budget deficit this year is expected to widen to 13.4% of GDP from 1% of GDP last year. Next year it will decrease to 7.3% of GDP, in 2024 to 5.8% of GDP, in 2025 to 4.9% of GDP, in 2026 to 5.2% of GDP and in 2027 to 4.1% of GDP.