Budget: what country spent and how it earned in Q1
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Loading... - Tanith Sallom
- 03 May 2023
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Execution of the state budget significantly stabilized in the first quarter
The revenues of the consolidated budget of Ukraine in the first quarter of 2023 exceeded UAH 627 billion (including grants of almost UAH 134 billion). This is actually half as much as in the first three months of last year. However, this year's expenditures increased even more significantly - by 1.8 times, to almost UAH 810 billion.
Despite this, the overall situation with the execution of the state budget is stable. This is primarily due to a more rhythmic flow of international financial assistance, successful (at least in terms of the amount) borrowing on the domestic market, stabilization of export revenues, and revival of business activity in relatively safe regions of the country. However, the main risks to the public finance system remain the same as last year. In addition, the country may face additional challenges, experts say.
Main sources of revenue and key expenditure items
Economists have done the math: Ukraine meets only a third of its budgetary needs on its own (an average of UAH 100-120 billion per month, with expenditures of UAH 250-300 billion). The rest is covered by borrowed funds, loans and grants from international partners.
The consolidated budget deficit (including lending) in the first quarter slightly exceeded UAH 179 billion. At the same time, the state budget deficit reached UAH 220 billion. Local budgets, on the other hand, remained in surplus (+UAH 40.9 billion).
"The deficit was financed with a significant margin at the expense of internal (the difference between borrowings and repayments is UAH 57.5 billion) and external borrowings (the balance is UAH 250.2 billion)," Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, said. Read More…
