State Budget Deficit Shrinks to 0.5% of GDP in 11M07

The Economy Ministry reported that the State Budget deficit shrank to UAH 2.9 bln (USD 0.57 bln) or 0.5% of GDP falling back from UAH 4.8 bln (USD 0.94 bln) in 10M07. Moreover, the Ministry noted that actual incomes to the budget exceeded the planned by 1.8%, while expenditures were 4.5% less than planned. Polina Khomenko:  Traditionally, budget expenditures surge in December exceeds incomes growth. Thus, we retain our projection of State Budget shortfall at 1.9 % of GDP.