JSC Ukrgasvydobuvannya transferred UAH 13.88 billion of rent payments to the consolidated budget of the country based on the results of its activities from January to August 2023.
“Of this amount, 5%, or UAH 693.9 million, will go to the budgets of local and regional levels in 11 regions where the company produces hydrocarbons,” the company said in a press release.
In particular, Kharkiv region will receive UAH 336.9 million, Poltava region – UAH 292.21 million, Lviv region – UAH 31.8 million, Dnipropetrovs’k region – UAH 18.38 million, and other regions – UAH 14.62 million.
“The amount of rent payments is calculated according to the sale price of Ukrgasvydobuvannya’s natural gas in favor of Naftogaz of Ukraine.
The National Bank of Ukraine in its August inflation report worsened its forecast for the country’s 2024 consolidated budget deficit including grants to UAH 1,281 billion, or 16.8% of GDP, down from UAH 811 billion, or 10.5% of GDP, in its April report.
“Deficits are expected to be higher than in the previous forecast, primarily due to the longer duration of security risks, and therefore the need for significant spending on the security and defense sector. Taking this into account, the amount of expected international assistance to finance other expenditures has been increased,” the NBU points out.
In the new report, the forecast of the consolidated budget deficit including grants in 2025 is raised to UAH 883 billion, or 10.0% of GDP, up from UAH 577 billion, or 6.5% of GDP in the April report.
Last year, as the NBU recalled, the deficit of the consolidated budget including grants amounted to UAH 845 billion, or 16.3% of GDP. In the second quarter of this year, it widened to more than UAH 233 billion, and excluding grants in revenue – to UAH 369 billion, or more than 24% of GDP.
“In 2023, the budget deficit excluding grants in revenue is expected to be at the level of the previous year – more than 26.3% of GDP. In the future, due to the increase in revenues, it will narrow to almost 20% of GDP in 2024 and 12% of GDP in 2025 excluding revenue grants,” the National Bank summarized.
It specified that it expects grants to decline from 9.3% of GDP last year to 6.5% of GDP this year, 2.9% of GDP next year and 1.8% of GDP in 2025.
“Given the significant budget deficits for several consecutive years and their financing mainly by debt, as well as the reduction of grant support in the medium term, the debt will approach 100% of GDP,” the National Bank said. It explained that it increased the debt-to-GDP ratio in this forecast compared to the previous one due to the revision of assumptions about the size of deficits upward and grant support downward in 2024-2025.
In particular, the NBU expects government debt to rise from 78.4% of GDP to 84.6% of GDP this year, to 96.6% of GDP next year and to 98.2% of GDP in 2025.
“At the same time, such a high level of debt will have a relatively moderate pressure on the budget in the coming years, primarily due to the receipt of loan funds on preferential terms – at low rates and with a deferred schedule of principal payments,” the NBU believes.
Ukraine’s state budget on Thursday received a $1.5 billion concessional loan through the World Bank’s Trust Fund mechanism under guarantees from the Japanese government, the Finance Ministry said.
“The raised funding will be used to restore the economy and strengthen social protection of the population,” the release quoted Finance Minister Serhiy Marchenko as saying, thanking the WB and Japan for the allocation of funds.
The Finance Ministry recalled that since the beginning of Russia’s full-scale invasion, Ukraine has received more than $581 million in concessional financing from the Japanese government through the Japan International Development Agency (JICA).
“This year, the Japanese government is expected to provide another $2 billion in direct budget support through the World Bank Trust Fund,” the ministry added.
As previously indicated by the Ministry of Finance, as of July 21 this year, Ukraine’s state budget received funding from international partners in the amount of $23.6 billion, compared to $32.1 billion last year, with a need for this year of about $42 billion.
Since then, the budget has also received EUR1.5bn of the sixth tranche of EU macrofinancial aid.
Mining and metallurgical group Metinvest in January-June of this year, including associated companies and joint ventures, transferred more than UAH 6.3 billion of taxes and fees to the budgets of all levels in Ukraine.
According to the company’s press release on Monday, despite the full-scale Russian invasion of Ukraine, Rinat Akhmetov’s Metinvest remains the backbone of the country’s economy.
It is specified that, in particular, for January-June this year Ukrainian enterprises of Metinvest paid more than 1.5 billion UAH of unified social contribution, almost 1.5 billion UAH of personal income tax and more than 1 billion UAH of profit tax.
In addition, significant sources of filling the state and local budgets of Ukraine were payment for the use of subsoil – UAH 872 million, payment for land – UAH 589 million and environmental tax – UAH 302 million, the press release said.
In the second quarter of 2023, the group transferred to the Ukrainian budget more than 3.8 billion UAH, which is 51% more than in the first quarter of this year. In particular, for April-June compared to January-March 2023, Metinvest enterprises increased payment of unified social contribution by 12%, up to UAH 813 million, personal income tax – by 26%, up to UAH 819 million, income tax – by 45%, up to UAH 643 million.
In April-June-2023, the fee for subsoil use increased 4 times, to UAH 698 mln, land fee – by 4%, to UAH 301 mln, environmental tax – by 23%, to UAH 167 mln.
Metinvest CEO Yuriy Ryzhenkov noted that with the start of the big war, the group gave up tax benefits to which it is entitled under the law and pays taxes in full.
“We understand that our resilience and endurance adds to the state’s ability to hold the blow in economic, defense and social areas. We will continue to be a point of support for the country, the army and Ukrainians. We will help as much as necessary – both before and after the victory”, – emphasized the top manager, who is quoted by the press service.
It is also reminded that taking into account associated companies and joint ventures, in the first quarter of 2023 Metinvest paid more than 2.5 billion UAH of taxes and fees to budgets of all levels in Ukraine, and in 2022 – 20.5 billion UAH.
“Metinvest is a vertically integrated group of mining and metallurgical companies. The group’s enterprises are mainly located in Donetsk, Luhansk, Zaporizhzhya and Dnipropetrovsk regions.
The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), jointly managing the holding.
Metinvest Holding LLC is the management company of Metinvest Group.
The Ukrainian State Postal Communications Enterprise (USPS) Ukrposhta (Kiev) is holding a tender for services of compulsory insurance of civil liability of owners of motor vehicles (OSAGO).
As reported in the electronic public procurement system “Prozorro”, the expected cost is -1.085 million UAH.
Documents are accepted until July 25.
As reported, the winner of a similar tender was IC “Guardian”.
The state budget deficit of Ukraine in June 2023 increased to 135.1 billion UAH from 88.3 billion UAH in May and 32.6 billion UAH in April, according to the website of the Ministry of Finance on Tuesday.
It specified that the general fund deficit increased to 130.8 billion UAH from 91.6 billion UAH in May and 65.6 billion UAH in April.
The Ministry of Finance, referring to the operational data of the State Treasury, said that the cash expenditures of the state budget in June increased slightly – to 376.4 billion UAH from 364.7 billion UAH in May and 295.8 billion UAH in April.
They even slightly decreased to 264.7 billion UAH from 277.7 billion UAH in May, which, however, is more than 229.7 billion UAH in April.
As pointed out by the Ministry of Finance, in June 2023 the receipts to the general fund of the state budget decreased to 133.7 billion UAH from 184 billion UAH in May and 162.8 billion UAH in April.
At the same time, international grant aid provided by the USA amounted to 44.4 billion UAH, approximately the same as in the previous two months.
In general, in January-June this year, cash expenditures of the state budget reached UAH 1 trillion 784.3 billion, including general fund – UAH 1 trillion 407.6 billion, or 93.5% of budget expenditures against 95% in May, while state budget revenue was UAH 1302.2 billion, of which UAH 269.4 billion was grant international aid.
During those six months, the state budget was executed with a deficit of UAH 476.3 billion, including the general fund deficit of UAH 532.7 billion against the planned schedule of the general fund deficit of UAH 931.8 billion.
As reported, the Verkhovna Rada on March 21, 2023 increased the state budget expenditures by 487 billion UAH, revenues – by 61 billion UAH, which led to an increase in the deficit by 419 billion UAH.
Now the state budget revenues are set at 1 trillion 390.4 billion UAH, including the general fund – 1 trillion 233.8 billion UAH, while the expenditures – respectively 3 trillion 75.9 billion UAH and 2 trillion 783.4 billion UAH.
The limit of the state budget deficit measures is set at 1 trillion 719.7 billion UAH, including the general fund – 1 trillion 543.9 billion UAH. It is assumed that it will be financed almost entirely by foreign borrowing of $42 billion.
The Ministry of Finance specified that the value added tax (VAT) from goods produced in Ukraine in June brought 17.5 billion UAH compared to 17.3 billion UAH in May, while VAT refund increased from 9.9 billion UAH to 10.3 billion UAH.
Import VAT added another 28.7 billion UAH to the budget (28.5 billion UAH in May), personal income tax and military levy 15 billion UAH (14.1 billion UAH), royalties for using mineral resources 4.5 billion UAH (4.5 billion UAH) and corporate income tax 2.3 billion UAH (28.5 billion UAH). Excise tax brought another 8.8 billion UAH (9.5 billion UAH) to the state budget, and import and export duties 2.6 billion UAH (2.5 billion UAH).
It is specified that the tax authorities exceeded the budget by 1.1%, or 8.4 billion UAH, while the State Customs Service – by 6.8%, or 2 billion UAH.
Receipts of ERUs to the Pension Fund and social insurance funds in June 2023 rose to 42.6 billion UAH from 38.5 billion UAH in May, added the Ministry of Finance.
According to him, the actual state borrowing in the general fund of the state budget in June 2023 decreased slightly – to 140.2 billion UAH from 142 billion UAH in May and 193.4 billion UAH in April, and a total of 879.1 billion UAH for six months, or 82.9% of the plan.
Particularly, UAH 285.7 billion (UAH 45.4 billion in June) were received from placement of government bonds, including UAH 97.4 billion (UAH 17.1 billion) in foreign currency, or $1963.8 million and EUR640.9 million (June – $319.7 million and EUR136 million).
Credit proceeds from external sources for six months amounted to UAH 593.4 billion, including UAH 94.8 billion in June (EUR 73.4 billion in May). The main volume was provided by EU macrofinancial aid – UAH 357 billion and IMF loan – UAH 131.4 billion.
Payments for redemption of public debt in June 2023 decreased to 48.3 billion UAH from 55.1 billion UAH in May, while the service – to 33 billion UAH from 45.7 billion UAH.
The Ministry of Finance stressed that the rollover of OVDPs in five months was full: the funds raised from OVDPs allowed to fully cover the needs for payments on them.
