The Monitoring of Main Indicators of Budget System of Ukraine

It contains a brief analysis and selections of graphs and charts illustrating the main changes occurring in the budget system of Ukraine. The consolidated and state budget revenues in January through May 2012 amounted to more than one third of the annual plan, which is in line with the level of budget execution during the previous five years. This could indicate a high probability of the annual plan being fulfilled this year. Special features of budget execution in May 2012 include an increase in the general revenues of the state budget, mainly due to higher VAT intake. Notably, growth is noted both for "internal" VAT and VAT paid on imported goods. At the same time, May revenues from the enterprise profit tax decreased by UAH 1.4bn or by 13.8% year-on-year, which is due to reducing the tax rate from 23% to 21%. The expenditures of the consolidated budget of Ukraine totaled UAH 38.7bn in May 2012, which is 19.4% more year-on-year. Compared to similar indicators of 2011, expenditures of the consolidated budget increased for nearly all items, except for expenditures for social protection and social security as well as the housing and communal services sector, which decreased by 3.3% and 3.4%, respectively. The highest growth was recorded for expenditures for the protection of the natural environment (by 81.3% against May 2011). Significant growth was demonstrated for expenditures for spiritual and physical development (by 55.6%), economic activity (by 50.6%), defense (by 44.6%), healthcare (by 31.2%), education (by 29.1%), and public order, security, and judiciary (by 22.0%). The actual expenditures of the state budget of Ukraine totaled UAH 30.9bn, which is 7.4% more year-on-year. In terms of the functional classification of expenditures, the following trends were observed compared to May 2011: expenditures for general government functions increased by 9.8% and totaled UAH 3.3bn; expenditures for defense increased by 44.6% and totaled UAH 1.2bn; expenditures for public order, security, and judiciary increased by 22.3% and totaled UAH 2.9bn; expenditures for economic activity increased more than by half compared to May 2011 (51.5%) and totaled UAH 4.5bn; expenditures for environmental protection increased by 77.3% to UAH 294.2mn; expenditures for housing and communal services grew significantly (nearly doubling) to UAH 4.3mn; expenditures for healthcare increased by 41.2% year-on-year and totaled UAH 738.1mn; expenditures for the spiritual and physical development increased by 124.8% and amounted to UAH 466.0mn; expenditures for education increased by 21.2% and totaled UAH 2.5bn; expenditures for social protection and social security decreased by 5.4% and amounted to UAH 6.3bn. The state budget provided UAH 808.8mn for covering the Pension Fund deficit, which is 3.7 times less than in May 2011. The state budget received UAH 113.9mn in repaid credits in May 2012, including remittances to the General Fund of the state budget at the amount of UAH 74.9mn. The state budget issued a total of UAH 675.4mn in credits in the period under review. The state budget had a surplus of UAH 843.9mn in May 2012, which is 64.8% less than the surplus in May 2011. The state budget debt principal was repaid at the amount of UAH 3.7bn or 60.0% more year-on-year. The internal debt repayment totaled UAH 3.4bn, and external debt repayment totaled UAH 280.4mn. The state budget borrowing totaled UAH 7.3bn, including UAH 7.2bn borrowed for the General Fund of the state budget. Internal market borrowing totaled UAH 7.2bn, and borrowing from external sources totaled UAH 132.2mn. The state budget received UAH 321.2mn from the privatization of state property. The total local budget revenues (without intergovernmental transfers) amounted to UAH 8.6bn in May 2012, which is 21.6% more than the respective indicator of 2011. The General Fund of local budgets received UAH 6.7bn and Special Fund received UAH 1.9bn. The highest year-on-year growth by region was observed in Kherson Oblast (+34.1%). The