The state budget deficit of Ukraine in April 2023 increased to 88.3 billion UAH from 32.6 billion UAH in April and 59.2 billion UAH in March, the Ministry of Finance said on its website on Friday.
It specified that the general fund deficit increased to 91.6 billion UAH from 65.6 billion UAH and 72.6 billion UAH respectively.
The Ministry of Finance with reference to the operational data of the State Treasury specified that the cash expenditures of the state budget in May also increased to 364.7 billion UAH from 295.8 billion UAH in April and 300.8 billion UAH in March.
The same picture is in the general fund: the growth to 277.7 billion UAH from 229.7 billion UAH in April and 225.2 billion UAH in March.
As pointed out by the Ministry of Finance, in May 2023, the receipts to the general fund of the state budget increased again to 184 billion UAH from 162.8 billion UAH in April and 152.2 billion UAH in March.
At the same time, international grant assistance provided by the USA amounted to the same UAH 45.7 billion as in the previous two months.
During January-May this year, cash expenditures of the state budget reached UAH 1 trillion 407.9 billion, including general fund – UAH 1 trillion 142.9 billion, or 95% of budget expenditures against 93.8% in April, while state budget revenues amounted to UAH 1,060.9 billion, of which UAH 225 billion were grant international aid.
During those five months, the state budget was executed with a deficit of UAH 341.2 billion, including the general fund deficit of UAH 401.9 billion against the planned schedule of the general fund deficit of UAH 713.9 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 are 3 trillion 75.9 billion UAH and 2 trillion 783.4 billion UAH respectively.
The state budget deficit is set at UAH 1 trillion 719.7 billion, including the general fund at UAH 1 trillion 543.9 billion. It is assumed that it will be financed almost entirely by external borrowing of $42 billion.
The Ministry of Finance specified that the value added tax (VAT) from goods produced in Ukraine in May brought 17.3 billion UAH compared to 16.6 billion UAH in April, but VAT refund again decreased from 11.4 billion UAH to 9.9 billion UAH.
The import VAT added another 28.5 billion UAH (25.1 billion UAH in April), personal income tax and military levy 14.1 billion UAH (13.4 billion UAH), royalties for subsoil use 4.5 billion UAH (4.9 billion UAH), and corporate income tax 28.5 billion UAH (2.3 billion UAH) to the budget.
Excise tax brought another 9.5 billion UAH (9.9 billion UAH) to the state budget; import and export duties accounted for 2.5 billion UAH (2.2 billion UAH), and the tax administration exceeded the estimate by 9.1%, or 8.4 billion UAH.
Besides, if in April the general fund of the state budget received another 35.9 billion UAH from the National Bank in the form of transferring part of profits (and the same amount was transferred to the Fund of liquidation of consequences of armed aggression of the Russian Federation in the special fund of the state budget), in May the general fund supported PrivatBank with dividends of 24.2 billion UAH.
Receipts of ERUs to the Pension Fund and social insurance funds in May 2023 rose to 38.5 billion UAH from 37.9 billion UAH in March, added the Ministry of Finance.
According to him, the actual state borrowing in the general fund of the state budget in May 2023 decreased to 142 billion UAH from 193.4 billion UAH in April and 176.7 billion UAH in March, and a total of 738.9 billion UAH for five months, or 87.9% of the plan.
Of which UAH 240.3 billion (UAH 68.6 billion in May) were received from placement of government bonds for five months, including UAH 80.3 billion (UAH 40.7 billion), or $1027.7 million, and EUR86.9 million ($616.4 million and EUR418 million) in foreign currency.
Credit proceeds from external sources for five months amounted to UAH 425.2 billion, including UAH 73.4 billion in May.
At that, payments on state debt repayment in May 2023 increased to 55.1 billion UAH from 46 billion UAH in April, and on servicing – to 45.7 billion UAH from 13.9 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.
Ukraine’s state budget deficit in December due to the receipt of a significant amount of grants decreased to 99 billion UAH from a record level of 170 billion UAH a month earlier, including the general fund – to 101.3 billion UAH from 163.3 billion UAH, the Ministry of Finance said on its website.
According to its operational data, in general, the state budget of Ukraine in 2022 executed with a deficit of 911.1 billion UAH, including the general fund – 909.5 billion UAH against the planned in the estimate 1399.5 billion UAH.
The Ministry of Finance specified that the actual state borrowings to the general fund of the state budget for 2022 amounted to 1261.1 billion UAH or 67.3% of the planned for this period, including from the placement of government bonds, 666.9 billion UAH, of which 103.9 billion UAH in foreign currency ($2.1 billion and EUR 980.6 million), and by 400 billion UAH hryvnia securities were purchased by the National Bank.
According to preliminary data of the Ministry of Finance, about $31 billion was financed from foreign sources, including about $14.3 billion, or 480.6 billion UAH in grants, which are recorded as state budget revenues.
As reported, in 2021, the deficit of the general fund of the state budget of Ukraine was 166.8 billion UAH, including in December – 108.1 billion UAH.
The state budget of Ukraine for 2023 was approved with a marginal deficit of 1296.5 billion UAH, including for the general fund – 1124.6 billion UAH.
Prime Minister of Ukraine Denys Shmyhal says that the state budget has received a $1.5 billion grant from the United States from the World Bank Trust Fund.
“The state budget received a grant in the amount of $1.5 billion. This is the last tranche of $4.5 billion from the United States from the World Bank Trust Fund,” Shmygal wrote on Twitter.
According to him, the funds will be used to reimburse budgetary expenses for pension payments and social assistance programs.
The prime minister thanked US President Joseph Biden for supporting Ukraine.
The state budget of Ukraine for the first four months of 2022 was executed with a deficit of UAH 146.6 billion, including the general fund with a deficit of UAH 157.2 billion, with a planned deficit for this period of UAH 317.1 billion, such preliminary results The Treasury Department announced on Monday.
Taking into account its data on the results of three months, in April the deficit of the general fund of the state budget amounted to UAH 89.7 billion compared to UAH 80.6 billion in March, while in February and January there were surpluses of UAH 1.1 billion and UAH 12 billion, respectively. UAH
On February 24, 2022, the National Bank of Ukraine (NBU) transferred part of the profit before distribution in the amount of UAH 19 billion to the state budget of Ukraine to financially support the functioning of the state under martial law, according to the website of the central bank.
“The National Bank promptly transferred part of the profit before distribution at the end of 2021 to the state budget of Ukraine. This amount is UAH 19 billion. This is a step that our state, its Armed Forces and every Ukrainian needs,” Governor of the NBU Kyrylo Shevchenko said.
The decision to transfer part of the profits was made by the Board of the National Bank of Ukraine on February 24, 2022.
As reported, the National Bank opened a special multi-currency account to raise funds for the needs of the Ukrainian army in connection with the introduction of martial law in Ukraine, the armed aggression of the Russian Federation and the danger to the state independence of Ukraine, its territorial integrity.
The State Service of Geology and Subsoil of Ukraine increased revenues to the state budget for the provided special permits and geological information by 1.6 times (by UAH 597 million) in 2021 compared to 2020, to UAH 1.58 billion, head of the service Roman Opimakh has said.
“We have all the prerequisites that 2022 will not be worse,” he said at a press conference in Kyiv on Wednesday.
According to him, in particular, revenues to the state budget from licenses sold at electronic auctions increased by 14.7% (by UAH 118 million) in 2021 compared to 2020, to UAH 923 million. The number of special permits sold through e-auction increased by 3.8 times (by 118), to 160.
In general, last year the service issued 377 new licenses, which is 2.8 times more than in 2020 (136). Every third of them was issued for the raw materials used in the construction, the most popular were special permits for amber, and the most expensive lots traditionally were hydrocarbon sites.
Opimakh clarified that in 2021, the State Geology Service granted special permits for the development of over 50,000 square meters of hydrocarbon areas. The main recipients were the companies of Naftogaz Group, in particular, the first gas produced at Yuzivska area is expected as early as 2022.
In addition, the Service prepared 35 facilities for investors in the development of strategic raw materials, which are used in the defense industry, aircraft manufacturing and the “green transition.”
“A list of strategic minerals has finally been approved, which includes 37 elements. An atlas of strategic minerals has also been submitted, a list of over 200 potential sites has been compiled, which we expect to be approved in 2022 and to be open for auctions or signing of agreements on production section, an interactive map of such special permits, deposits and ore occurrences was compiled – more than 900 objects,” Opimakh said.
At the same time, he recalled that Ukraine still has limited access to geological information on the reserves of strategic raw materials. “The Ministry of Natural Resources worked hard on this last year, I hope that the work will end with the removal of this stamp,” the head of the State Service of Geology and Subsoil said.
Opimakh also recalled that in 2021, the largest number of special permits in recent times, 315, was revoked. The key grounds for revocation were court decisions (73%), voluntary refusal (10%) and decisions of the National Security and Defense Council (9%). In terms of minerals: construction materials and groundwater – 31% each, coal – 23%, hydrocarbons – 12%, and metal ores – 2%.
The key grounds for revocation are the following: subsoil use has not been started for two years, there are no documents for land for subsoil use, the absence of a mining allotment certificate, non-admission to the facility for inspections, failure to comply with the requirements of design documents or their absence.
In addition, the Service took an active part in the fight against illegal mining, the bulk of which is associated with sand. In particular, the possibility of prompt verification of the legality of mining through a smartphone has been created.
“Together with the State Geological Information Fund, we have prepared an excellent product that will make it easier for the police and the public to check for a special permit at the operational level. If you see, perhaps, illegal mining, then you can see if there is a special permit and whether it is valid,” he explained.
The service’s materials also clarified that in 2021, subsoil users paid UAH 51.5 billion in royalty payments.
