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2022 budget deficit exceeds two years

Photo: t.me/V_Zelenskiy_official

Because of the war in Ukraine, budget revenues fell sharply, while expenditures rose. Within five months, the deficit exceeded UAH 270 billion.

Ukraine’s budget deficit for the five months of 2022 exceeds the deficits of the past two years, according to the National Bank’s June macroeconomic and monetary analysis.

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“In May, the state budget deficit continued to widen, and in January-May 2022, the negative balance exceeded the annual deficits of the past two years,” the statement said.

The NBU predicts a collapse in state budget revenues, which have recently slowed due to tax and non -tax revenues. In particular, in April, a profound decline in non -tax revenues in the budget occurred due to the early transfer of revenues from the central bank.

At the same time, expenditures, as expected, increased significantly, mainly for military needs and social programs.

In general, the state budget deficit can be funded through international and financial funding.

It was learned that in April the balance of trade in goods returned to deficit due to the faster resumption of imports compared to exports. However, the surplus continued in the current account due to significant bailouts and uninterrupted flow of foreign exchange remittances.

According to the Ministry of Finance, within five months of 2022, state borrowings in the general fund of the state budget will reach UAH 376.6 billion. More than 200 billion hryvnias in the budget came from the issue of military bonds. The deficit reached 271 billion.

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Source: korrespondent

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