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State budget deficit totals 1.1% of GDP in 1H12

State budget deficit totals 1.1% of GDP in 1H12

3 August 2012

Ukraine’s state budget deficit amounted to UAH 6.7 bln (1.1% of GDP) in 1H12 vs. UAH 11.0 bln over the comparable period last year. Budget revenue growth was strong at 17% yoy in 1H12 thanks to an increase in tax collections and sizable transfers of NBU earnings to the budget (UAH 7.9 bln in 1H12 vs. UAH 2.4 bln in 1H11). Expenditures grew at a slower pace of 13% yoy. The government is targeting a full-year state budget deficit of UAH 25.1 bln, or 1.7% of 2012E GDP.

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