Ukrainian state budget deficit 24.2% of spending in 5M

MOSCOW. June 2 (Interfax) - Ukraine's state budget deficit was UAH 341.2 billion or $9.3 billion at the current exchange rate and 24.2% of pending in January-May 2023, Ukrainian media reported, citing a report from the Finance Ministry.

State budget cash spending was UAH 1.408 trillion, with general fund spending of 1.143 trillion or 95% of the budget plan, and revenue of UAH 1.051 trillion, of which UAH 225 billion was international donor aid.

The Finance Ministry quoted preliminary State Treasury data, according to which the state budget deficit rose to UAH 88.3 billion in May from UAH 32.6 billion in April and the general fund deficit to UAH 91.6 billion from UAH 65.6 billion. General fund spending rose to UAH 277.7 billion from UAH 229.7 billion and revenue to UAH 184 billion from 162.8 billion.

Revenue from value-added tax on goods made in Ukraine was UAH 17.3 billion and import VAT was UAH 28.5 billion. Corporate profit tax revenue was UAH 28.5 billion. The general fund received UAH 35.9 billion of National Bank profit in April and was bolstered by UAH 24.2 billion in Privatbank dividends in May.

Actual state borrowing for the state budget's general fund decreased to UAH 142 billion in May from UAH 193.4 billion in April and totaled UAH 738.9 billion or 87.9% of target since the start of the year.

This included UAH 240.3 billion raised with government bonds in the five months, including UAH 68.6 billion in May, and UAH 425.2 borrowing from external sources, including UAH 73.4 billion in May.

Public debt repayments grew to UAH 55.1 billion in May from UAH 46 billion in April, and debt servicing payments rose to UAH 45.6 billion from UAH 13.9 billion.

External financing for the deficit came to $19.8 billion in 5M.

This included grants of $6.16 billion, of which $6 billion from the United States, $52 million from Germany, $50 million from Spain, and $21 million from each of Finland and Ireland. Ukraine's biggest creditor this year is the EU with $8.12 billion, already more than $7.96 billion for the whole of last year.

The parliament in March 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.