9 Jan 2023 12:42

Ukraine's federal budget sees deficit of $25 bln in 2022 - Finance Ministry

MOSCOW. Jan 9 (Interfax) - Ukraine's federal budget deficit in 2022 amounted to UAH 911.1 billion (more than $24.9 billion at current exchange rates), Ukrainian media reported on January 3 citing the Finance Ministry's website.

The deficit of the general fund [the budget of Ukraine includes the general fund, which receives taxes and fees and is used for financing major expenditures, and a special fund, in which funds are earmarked for particular purposes] reached UAH 909.5 billion compared with UAH 166.8 billion in 2021 (the target for 2022 was UAH 1.399 trillion).

The state budget deficit in December due to the receipt of a substantial amount of grants decreased to UAH 99 billion from a record high of UAH 170 billion a month earlier, in particular, the deficit of the general fund dropped to UAH 101.3 billion from UAH 163.3 billion.

Cash expenditures of Ukraine's state budget in December reached UAH 408.8 billion (in November - UAH 312.7 billion), including UAH 330.5 billion (UAH 260.5 billion) from the general fund. Overall state budget expenditures last year amounted to UAH 2.702 trillion, including UAH 2.410 trillion from the general fund, which is 91.7% more than in 2021, but 7.8% less than planned.

In 2022, the general fund of the federal budget saw revenues of UAH 1.491 trillion, of which grant funding accounted for UAH 480.6 billion (in 2021, revenues amounted to UAH 1.084 trillion).

State borrowings amounted to UAH 1.261 trillion (of which UAH 400 billion were National Bank borrowings and UAH 564.2 billion were foreign loans).

VAT on goods produced in Ukraine in December amounted to UAH 17.5 billion (UAH 12 billion in November), with UAH 8.1 billion (UAH 13.6 billion) allocated for VAT refunds. The import VAT, concessions on which were canceled at the beginning of July, totaled UAH 29.3 billion (UAH 26.8 billion in November), rent payments for use of mineral resource amounted to UAH 9.6 billion (UAH 5.8 billion), and corporate income tax totaled UAH 2 billion (UAH 23.6 billion).

Overall, import VAT last year totaled UAH 253 billion (UAH 380.7 billion a year earlier), while VAT on goods produced in Ukraine stood at UAH 213.9 billion (UAH 155.8 billion), VET refunds fell to UAH 84.6 billion (UAH 159.7 billion), corporate income tax amounted to UAH 117 billion (UAH 147.8 billion), rent payments for use of mineral resources came to UAH 81 billion (UAH 75.6 billion), excise taxes to UAH 78.9 billion (UAH 75.6 billion) and import and export duties totaled UAH 21 billion.

As reported, monthly federal budget deficit financing needs in 2022 were about $5 billion, according to the Finance Ministry and the government.

The official exchange rate on January 9 was UAH 36.57 /$1.