State budget deficit in Ukraine up 2.1-fold y/y in Jan-Aug.

By bne IntelliNews October 1, 2013

In Jan-Aug, the State budget deficit in Uraine rose 2.1-fold y/y to UAH 34.7bn (USD 4.3bn) compared to UAH 16.6bn seen in Jan-Aug 2012, the FinMin has announced. Consolidated budget deficit reached UAH 34.6bn, up 2.3-fold y/y. The deficit of the general fund of state budget amounted to UAH 14.2bn in Jan-Aug. In Jan-Aug, the total revenues of consolidated state budget did not change in y/y terms and stood at UAH 284.6bn compared to UAH 284.2bn recorded a year earlier.

The largest contribution to state budget had:

  • VAT-UAH 117.9bn
  • Income tax-UAH 37.1bn
  • Excise tax-UAH 16.9bn
  • Fee for use of mineral resources-UAH 8.4bn
  • Import duty-UAH 7.2bn

Own revenues of budgetary institutions in Jan-Aug amounted to UAH 18.5bn. The total amount of cash expenditures of the state budget of Ukraine in Jan-Aug rose by 7.7% - to UAH 318.7bn.

In Jan-Aug, the State Property Fund (SPF) has transferred UAH 908mn (USD 113.5mn) to the state budget from privatization of the state property, the Fund has announced. This includes UAH 718.9mn from the sale of Donbasenergo. The 2013 state budget's receipts from privatization are anticipated at UAH 10.9bn. Thus, the Jan-Aug proceeds make 8.3% of the sum.

In addition, the SPF has transferred UAH 703.5mn to the national budget in revenue from lease of state property. In 2013, UAH 835mn of revenue from lease of state property is supposed to be transferred to the national budget, so 84.25% of the sum has been already collected.

Moreover, in Jan-Aug, the SPF sent UAH 125.816mn to the state budget in dividends accrued on the shares in public ownership. The annual plan of receipts in dividends was fulfilled 208.4%.

In H1, the state budget revenues declined by 0.2% y/y to UAH 162.65bn (USD 20.33bn), the FinMin has reported. The general fund of the state budget received UAH 142.4bn, up by 0.8% y/y, while special fund got UAH 20.29bn, down by 6.3% y/y.

The law on the state budget for 2013 sets its revenues at UAH 370.05bn, in particular those in the general fund - UAH 322.08bn, expenses - UAH 419.33bn and UAH 370.48bn respectively. The deficit is estimated at up to UAH 50.59bn, in particular that of the general fund - UAH 44.53bn.

Ukraine's state budget for 2013 could be revised following its fulfillment in Jan-Sep, announced FinMin. According to FinMin’s official, Halyna Pakhachuk, the changes will be made only in case of necessity. At the same time, she recalled that the provisions of the Budget Code envisage state budget cutting amid the absence of proper revenues. She said that the revision of state budget figures after the nine months of the year was expedient, since many expert institutes currently have different macroeconomic forecasts.

Consolidated state budget, UAH bn 2011 Q1/12 H1/12 2012 Q1 H1/13 Jan-Aug
Revenues   398.6 98.6 208.8 445.5 106.6 211.1 284.6
Expenditures 416.9 99.0 216.9 492.4 112.1 239.1 318.7
Balance*   -23.1 -0.7 -9.7 -50.7 -5.7 -28.0 -34.7
*Balance includes budget crediting            
Source: FinMin              

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