Home
/
News
/

State budget virtually balanced in August

State budget virtually balanced in August

28 September 2012

State budget balance turned marginally positive at USD 35 mln in August while the cumulative 8M12 deficit remained at a USD 2.1 bln (1.1% of 2012E GDP), according to Finance Ministry data. Increase in state budget revenues in August stood at a mere 3% yoy while proceeds from corporate profit tax (paid last month with relation to 2Q12 earning) remained flat yoy in August. In 8M12, the pace of revenue growth (+ 9.3% yoy) was well behind the pace of expenditure increase (+14.5% yoy).

Alexander Paraschiy: August stats support our view that government is unlikely to meet its 2012 state budget deficit target of USD 3.1 bln (1.7% of GDP). Disappointing economic growth rate (we estimate GDP fell in August on year-on-year basis) and hefty advance tax payments made in 1H12 will keep growth in budget revenues muted in the coming months. At the same time, expenditures growth is unlikely to subside, driven by social payments ahead of the October parliamentary election. We see 2012E state budget deficit in the range of 2.2-2.4% of GDP.

Latest News

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...