Ukraine's federal budget shortage totals $3.6 bln in August, $19.5 bln in Jan-Aug

MOSCOW. Sept 4 (Interfax) - Ukraine had a federal budget shortage of UAH 714.6 billion in January-August 2023, or $19.5 billion at the current exchange rate, Ukrainian media reported, citing the country's Finance Ministry.

Specifically, the shortage in the general fund [taxes, duties and fees that go to the general fund, which finances general expenses] was UAH 749.8 billion versus about UAH 1.237 trillion planned.

Ukraine's cash expenditures from the federal budget totaled UAH 2.377 trillion in January-August, including the general fund at nearly UAH 1.888 trillion. Federal budget revenues totaled nearly UAH 1.656 trillion, including the general fund at nearly UAH 1.131trillion. International grants totaled UAH 317.2 billion, with UAH 310.8 billion coming from the United States.

Ukraine's federal budget shortage increased to UAH 130.7 billion in August, or $3.6 billion at the current exchange rate, from UAH 107.6 billion in July against UAH 135.1 billion in June. The deficit of the general fund rose to UAH 122.2 billion last month from UAH 94.9 billion in July versus UAH 130.8 billion in June.

Citing data from the Federal Treasury, the Finance Ministry has indicated that cash expenditures from the federal budget totaled UAH 310.1 billion in August against UAH 282.6 billion in July and UAH 376.4 billion in June; and the general fund totaled UAH 248.2 billion last month versus UAH 231.9 billion in July and UAH 264.7 billion in June.

The ministry has noted that revenues to the general fund of the federal budget declined to UAH 124.7 billion in August from UAH 136.7 billion in July and UAH 133.7 billion in June, while there was no U.S. assistance, which had previously provided around UAH 45 billion monthly.

As previously reported, Ukraine's parliament, the Verkhovna Rada, approved federal budget expenditures of nearly UAH 3.076 trillion after having adjusted the parameters of the 2023 federal budget in March, setting the general fund at about UAH 2.783 trillion and income at about UAH 1.39 trillion from nearly UAH 1.234 trillion. The debt ceiling is set at nearly UAH 1.72 trillion from nearly UAH 1.544 trillion. The federal budget is expected to be financed nearly entirely from external borrowings of $42 billion.

The official exchange rate as on September 4, 2023, is UAH 36.57/$1.