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Ukraine’s state budget sees over UAH 35 bln deficit in H1

Ukraine's state budget deficit in the first half of 2016 (H1) amounted to UAH 35.1 bln ($1.4 bln), according to the National Bank of Ukraine's (NBU) Macroeconomic and Monetary Review published on the regulator's website.
Ukraine's state budget sees over UAH 35 bln deficit in H1

According to the NBU, the state budget deficit in June amounted to UAH 8.6 billion, UNIAN reports.

“Despite an insignificant growth in annual terms, [state budget] revenues were lower and expenditures were higher compared with May, resulting in the expansion of the state budget deficit (to UAH 8.6 billion in June and UAH 35.1 billion in H1),” the report stated.

The growth of state budget revenues in June accelerated to 16.7% in annual terms due to the faster pace of growth in tax revenues. This improvement was due to a temporary factor – low VAT refunds in June.

The growth of state budget expenditure in June accelerated to 16.5% in annual terms due to an increase in the salaries of state border guard officers and a higher minimum wage.

The NBU said the main deficit financing source was the funds obtained from the issuance of domestic government loan bonds. In particular, the budget accumulated more than UAH 7.4 billion and US$50 million through the issuance of government securities in June.