Ukraine's January-May budget deficit larger than that of previous 2 years - NBU

MOSCOW. June 6 (Interfax) - The budget deficit posted by Ukraine in January-May 2022 was larger than the budget deficit of the previous two years, the National Bank of Ukraine (NBU) said in its macro-economic and monetary review for June.

"The budget deficit continued to expand in May. In January-May 2022, the negative balance exceeded the annual deficits of the previous two years," the Ukrainian media said, citing the NBU's review, published on Monday.

Meanwhile, budget revenue continued to contract, though this process somewhat slowed down thanks to the arrival of tax and non-tax proceeds. There was a considerable drop of the budget's non-tax proceeds in April because of the early transfer of the NBU's profit.

At the same time, as expected, spending grew considerably, primarily on military needs and social programs. On the whole, international and monetary financing helped cover Ukraine's budget deficit, the NBU said.

Ukraine again posted a foreign trade deficit in April, as the resumption of import was faster than the pace of export. However, Ukraine managed to maintain this year's foreign trade surplus thanks to considerable amounts of financial assistance and the steady flow of currency transfers, the bank said.