Ukraine state budget deficit narrows to $397 mln in Jan

MOSCOW. Feb 5 (Interfax) - Ukraine had a state budget deficit of UAH 14.9 billion or $396.6 million at the current rate in January, down from record UAH 285 billion in December and UAH 145.1 billion in November, Ukrainian media reported, citing preliminary data from the State Treasury.

The Finance Ministry said the General Fund deficit - the budget includes the general fund, which receives taxes and fees and is used for financing major expenditures] narrowed ,from UAH 274.4 billion in December and UAH 162.5 billion in November to UAH 33.3 million in January.

Budget expenditure fell to UAH 169.3 million in January from a record UAH 548.2 billion in December and UAH 337.9 billion in November.

General Fund expenditure fell to UAH 149.5 billion in January from UAH 397.7 billion in December and UAH 286.3 billion in November.

General fund revenue was UAH 116.6 billion in January, down from UAH 127.1 billion in December and 121.7 billion in November, with grants falling to UAH 2.4 billion from UAH 20.5 billion in December, while there no grants in November.

Value-added tax revenue from goods produced in Ukraine came to UAH 35.1 billion in January, down from UAH 22.5 billion in December, and VAT refunds decreased to UAH 9.8 billion from UAH 10.9 billion.

Import VAT raised another UAH 37 billion for the budget in January, compared with UAH 35.7 billion in December; corporate profit tax fell to UAH 2 billion from UAH 4.1 billion; personal income tax and military tax to UAH 13 billion from UAH 20.9 billion; and subsoil use rent to UAH 3 billion from UAH 3.5 billion, Excise tax revenue rose to UAH 12.2 billion from UAH 8.3 billion and revenue from import and export duties to UAH 4.6 billion from UAH 3.2 billion.

Actual government borrowing to the General Fund was UAH 43.28 billion in January, 34.6% of the plan.

Borrowing included UAH 32.03 billion from the placement of government bonds, of which UAH 19.3 billion in foreign currency, namely $2502 million and 235 million euros.

Public debt repayment amounted to UAH 17.5 billion or 94.6% of the plan and servicing to UAH 9.5 billion or 90.6% of the plan in January

The Finance Ministry rolled over all government bond debt in January.

Ukraine's parliament has passed a 2024 budget with a deficit of UAH 1.57 trillion or 20.6% of forecast GDP. Budget revenues are expected to total UAH 1.77 trillion, not including potential financial assistance, and spending UAH 3.36 trillion at an average exchange rate of UAH 40.7/$1.

Budget revenue was UAH 2.67 trillion in 2023, according to preliminary data, including UAH 0.43 trillion of assistance. Spending exceeded UAH 4 trillion and the deficit was UAH 1.33 trillion at an average exchange rate around UAH 36.6/$1.