The National Bank reported an increase in budget revenues, but it was significantly lower than expenses.
The revenue share of Ukraine’s budget is increasing, but its own revenue covers only 43% of expenses. The National Bank of Ukraine reported this in the Monthly Macroeconomic and Monetary Review for September 2023.
It is noted that the improvement in tax revenues is related both to the revival of general economic activity (the amount of corporate income tax received in August was the largest since the beginning of a large-scale war), and to a certain strengthening the administration. , as well as the restoration of fuel taxation from July 1.
However, own income (excluding grants) in January–August 2023 covered only 43% of the expenses of the general fund of the state budget, the NBU said.
The analysis indicates that the budget deficit in Ukraine has slightly decreased, including due to the slowdown in the growth of non-priority expenditures.
“The state budget deficit decreased in July-August compared to June, but remained quite significant and larger than in the past. In January-August 2023, the deficit exceeded UAH 1,031 billion, excluding grants to revenues (UAH 714.6 billion they took into account),” the National Bank reported.
It was also noted that the budget deficit and debt repayment were mainly financed by international aid amounting to $6.1 billion. in July – August and 29.7 billion dollars. since the beginning of the year, of which more than 21 billion dollars. consists of loans.
The NBU noted a significant increase in the role of domestic borrowing this year. This trend is explained by attractive real yields and the inclusion of benchmark government bonds to meet required reserves.
As for budget expenditures, the main area remained the defense and security sector (more than 64% of all expenditures). In particular, the resources are directed to the salary of military personnel and logistical support of the Armed Forces of Ukraine.
Social expenditures remained an important part, in particular, social protection and state guarantees of medical services to the population.
The Ministry of Finance named the risk of the 2024 state budget: it depends on the level and rhythm of international aid.
Budget 2024: what will happen to spending on social services and war
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Source: korrespondent
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