3 Aug 2023 15:45

Ukrainian state budget deficit narrows to UAH 107.6 bln in July

MOSCOW. Aug 3 (Interfax) - Ukraine's state budget deficit narrowed to UAH 107.6 billion in July from UAH 135.1 billion in June, Ukrainian media reported, citing the Finance Ministry's website.

This included a General Fund deficit of UAH 94.9 billion, down from UAH 130.8 billion in June but up from UAH 91.6 billion in May.

State budget spending fell to UAH 282.6 billion in July from UAH 376.4 billion in June and UAH 364.7 billion in May, the MinFin said, quoting preliminary data from the State Treasury.

General Fund spending fell to UAH 231.9 billion in July from UAH 264.7 billion in June and UAH 277.7 billion in May.

General Fund revenues rose to UAH 136.7 billion in July from UAH 133.7 billion in June, when they fell from UAH 184 billion in May and UAH 162.8 billion in April.

International donor aid from the United States totaled UAH 47.6 billion in July, up from UAH 44.4 billion in June.

State budget spending in January-July 2023 was UAH 2.067 trillion, of which General Fund spending UAH 1.64 trillion, or 93.4% of the target compared with 93.5% at the end of June and 95% at the end of May. State budget revenue was UAH 1.477 trillion, of which UAH 317.2 billion in international donor aid, including General Fund revenue of 1.006 trillion.

There was a budget deficit of UAH 583.9 billion, including UAH 627.6 billion for the General Fund, in 7M 2023. The planned General Fund deficit was UAH 1.089 trillion.

The parliament on March 21 increased state budget expenditures for 2023 by UAH 487 billion and revenues by UAH 61 billion, which increased the deficit by UAH 419 billion.

Now, state budget expenditures are set at UAH 3.076 trillion and revenues at UAH 1.39 trillion, with General Fund expenditures at UAH 2.783 trillion and revenue UAH 1.234 trillion.

Ukraine's state budget for 2023 caps the deficit at UAH 1.72 trillion, including a general fund deficit of UAH 1.544 trillion. It is supposed to be financed entirely with $42 billion of external borrowing.

Revenue from value-added tax on goods made in Ukraine was UAH 18.7 billion in July compared with UAH 17.5 billion in June. VAT refunds fell from UAH 10.3 billion to UAH 10.0 billion.

Import VAT was UAH 30.8 billion, compared with UAH 28.7 billion in June. Revenue in from personal income tax and the military tax was UAH 15.2 billion in July and UAH 15.0 billion in June, revenue from mineral resource rent - UAH 5.4 n an UAH 4.5 billion, respectively, and from corporate profit tax - UAH 3.2 billion and UAH 2.3 billion. Revenue from excise tax was UAH 8.7 billion and UAH 8.8 billion and from import and export duties - UAH 2.4 billion an UAH 2.6 billion.

Tax revenue was 2.8% or UAH 11.0 billion above target in 7M 2023 and customs revenue was 1.6% above target.

The unified social tax for the pension fund and social insurance fund in July decreased to UAH 39.4 billion, from UAH 42.6 billion in June.

Actual state borrowing for the General Fund increased to UAH 154.6 billion in July from UAH 140.2 billion in June and 142 billion in May, and totaled UAH 1.034 trillion or 88.1% of target since the start of the year.

This included UAH 324.8 billion raised with government bonds in the seven months, including UAH 39.1 billion in July, and UAH 105.7 borrowing from in foreign currencies, including UAH 8.3 billion in July, consisting of $2.181 billion and 640.9 million euros, in 7M, including $227.3 million in July.

Public debt repayments grew fell to UAH 26.9 billion in July from UAH 48.3 billion in June and UAH 55.1 billion in May, and debt servicing payments fell to UAH 11.2 billion from UAH 33 billion and UAH 45.7 billion.

The Finance Ministry rolled over all government bonds debt, raising enough with new placement to cover redemptions in full.