Ukraine posts state budget deficit of $2.4 bln in Feb

MOSCOW. March 3 (Interfax) - Ukraine's state budget deficit grew to UAH88.8 billion ($2.4 billion at current exchange rate) in February from UAH72.3 billion in January, Ukrainian media reported, citing a report from the Finance Ministry.

This included a general fund deficit of UAH93.2 billion, up from UAH78.9 billion. Ukraine's state budget includes a general fund that collects taxes and fees and finances the main expenditures, and a special fund for special purposes.

State budget spending rose to UAH252.9 billion in February from UAH193.7 billion in January, with general fund spending growing to UAH226.7 billion from UAH183.6 billion, according to preliminary data.

General fund revenues totaled UAH132.2 billion in February, including international grant assistance of UAH51.4 billion, up from UAH104.4 billion and UAH36.6 billion, respectively, in January, the ministry said. State budget revenues without grant financing grew to UAH80.8 billion in February from UAH67.8 billion in January.

Revenue from value-added tax on goods made in Ukraine grew to UAH15.1 billion in February from UAH11.8 billion in the previous month, while VAT refunds dropped to UAH6.6 billion from UAH19.3 billion. Revenue from VAT on imports, preferences for which were cancelled last July, rose to UAH27.1 billion in February from UAH24.4 billion in January.

Revenue in February totaled UAH13 billion from personal income tax and the military fee, up from UAH11.3 billion in January; UAH2.7 billion from the fee for use of mineral resources, down from UAH5.6 billion; UAH7.4 billion from corporate profit tax, up from UAH1.2 billion; UAH7 billion from excises tax, up from UAH5.3 billion; and UAH2.3 billion from import and export duties, up from UAH2 billion.

Actual state borrowing for the state budget's general fund decreased to UAH66.7 billion in February from UAH160.1 billion in January, and totaled UAH226.8 billion, or 58.8% of the plan, in the first two months of 2023, the ministry said. This included UAH84 billion raised with government bonds in the two months, including UAH14.7 billion in foreign currency ($308.7 million and 86.9 million euros).

External financing sources included 3 billion euros of macro-financial assistance from the European Union received in January, and a World Bank loan of $498 million and a loan of 150 million euros from the International Bank for Reconstruction and Development received in February.

Public debt repayments grew to UAH34.9 billion in February and debt servicing payments rose to UAH12 billion from UAH12.8 billion and UAH0.6 billion, respectively, in January.

Ukraine's state budget for 2023 targets a deficit of UAH1.297 trillion, including a general fund deficit of UAH1.125 trillion.

The official exchange rate was UAH36.57/$1 on March 2.