Ukraine passes state budget for 2023, hopes to raise $38 bln abroad to cover deficit

MOSCOW. Nov 24 (Interfax) - President Vladimir Zelensky signed the law on the state budget of Ukraine for 2023 on Wednesday, Ukrainian media reported, citing the parliament's website.

The budget projects revenue of UAH1.329 trillion, including UAH1.173 billion for its general fund, and spending of UAH2.581 trillion and UAH2.297 trillion, respectively.

The budget targets a deficit cap of UAH1.297 trillion or 20.6% of forecast GDP, including UAH1.125 trillion in the general fund. It is expected that the deficit will be financed almost completely by foreign borrowing in the amount of $38 billion.

The cap on the state debt as of the end of 2023 is set at UAH6.423 trillion or 102.3% of forecast GDP.

In the course of the budget plan's preparation for its second reading, the forecast for GDP growth was lowered to 3.2% from 4.6% and the inflation forecast was lowered to 28% from 30%. The budget assumes the hryvnia's exchange rate against the U.S. dollar will be UAH45.80/$1 at the end of 2023 and average UAH42.20/$1 for the year.

It was reported earlier that, following several changes, Ukraine's state budget for this year projects revenue of UAH1.553 trillion (including UAH1.211 trillion for the general fund), spending of UAH3.037 trillion (including UAH2.613 trillion from the general fund) and a deficit of UAH1.497 trillion.

The official exchange rate was UAH36.57/$1 on November 23.