Budget deficit at 3.6% of GDP in 11M09

Ukraine’s state budget deficit reached UAH 16.1 bln in 11M09, and the consolidated budget deficit – UAH 15.7 bln, according to official data from the Finance Ministry published on December 31. Mykyta Mykhaylychenko: When calculating the budget deficit, the government included into its revenues ~UAH 14 bln from converting SDRs, received from the International Monetary as a quota distribution in 3Q09. We believe, according to their economic essence, these resources have to be reflected as deficit financing. Corrected for this, the consolidated budget deficit in 11M09 reached almost UAH 30 bln or ~3.6% of GDP. For 2009, Ukraine’s fiscal deficit could reach as much as UAH 43 bln and UAH 55 bln or 6% of GDP, including financing of Naftogaz for gas imports.