According to the data of the State Treasury Service of Ukraine, the state budget revenues in the first four months of 2019 increased by 18.2% compared to the last year’s period and amounted UAH 322.6 billion, which is equal to 95.7% of the corrected allocation.
The budget allocation was reviewed in April due to the profit received from the National Bank in April equal to UAH 47.6 billion as well as due to the privatization revenues replaced by domestic bonds.
The revenues of the general fund of the state budget increased by 13.4% to UAH 282.3 billion due to the following factors:
• Higher revenues from the income tax (+ 22.8%) due to the increased average salaries;
• Higher revenues from the corporate profit tax (+ 2.2%) due to the better financial results of companies;
• Higher revenues from the subsoil rent fee (+ 64.5%), mostly to the increased natural gas production and the base effect;
• Higher revenues from the excise on tobacco products made in Ukraine (+ 5.8%) due to the increased excise rates;
• Transfer of the profit from the National Bank to the state budget as required by the Law of Ukraine “On the National Bank of Ukraine” (UAH 47.6 billion).
Still, the revenues of the state budget underperformed and were equal to 93.2% of the budget allocation for the period. It has to do with the lower balance of the VAT revenues, the higher exchange rate UAH/USD, lower imports as well as the late (on April 26) adoption of the rate for the distribution of the net profit and the dividends payout of state-owned companies (due to this, state-owned companies will make their payments to the state budget in Q2 of 2019). It is expected that the underperforming state budget revenues will be partially compensated by higher revenues received from the National Bank (as decided by the National Bank’s Council, it will transfer UAH 64.9 billion to the state budget in 2019). At the same time, the Ministry of Finance daily monitors the budget revenues and takes all steps to stick to the budget figures and to keep the deficit within the limits set by law.
In January-April 2019, the expenses for defence, social welfare, debt service and subsidies to the local budgets were covered in full according to the set allocations and respective payment orders.
The state budget deficit was equal to UAH 0.9 billion with this year’s total budget deficit set at UAH 90 billion. The deficit was covered with state bonds. Revenues from privatization were equal to UAH 190.7 million.
New loans taken by the state in January-April 2019 were equal to approx. UAH 158.5 billion, which was equal to 98.9% of the reviewed allocation for the period. The total loans taken through domestic state bonds for the state budget were equal to UAH 132.2 billion (UAH 91 billion, USD 1.5 billion and EUR 38.7 million). Loans received from external sources in January-April 2019 were equal to UAH 26.4 billion that were taken as the second tranche of the loan backed by the World Bank amounting EUR 529 million and the additional issue of international state bonds of 2018 amounting USD 350 million.
Debt re-payment in January-April 2019 were equal to approx. UAH 126.9 billion, which makes 98.1% of the reviewed plan for the period. The expenses for serving the public debt in this period were equal to approx. UAH 39 billion, which makes 99.9% of the reviewed plan for the period.
As per May 2, the funds available on the Single State Treasury Account were equal to UAH 36.85 billion, the sum available on the currency accounts of the State Treasury Service was equal to UAH 53.8 billion. This means that the Ministry of Finance is fully prepared for the peak period in debt re-payments due in May.