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 publication is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of the Institute for Budgetary and Socio-Economic Research (IBSER) and do not necessarily reflect the views of USAID or the United States Government. The actual revenue of the State budget of Ukraine totaled UAH 51.6 billion in January-February 2012, which is UAH 7.3 billion or 16.5% more than in 2011. The enterprise profit tax, which was 18.1% higher than in 2011, was the main driver behind this growth in revenue, as the deadline for paying this tax for 2011 was in February. The revenue intake was 15.5% of the annual plan, which is more than usual. In particular, 21.6% of the annual amount for the enterprise profit tax was received, which gives grounds for revising the annual plan for this source. The expenditures of the consolidated budget of Ukraine totaled UAH 35.0 billion in February 2012, which is 22.1% more year-on-year. Compared to 2011, consolidated budget expenditures increased for all items. Expenditures for spiritual and physical development doubled compared to February 2011, and reached UAH 311.4 billion. Expenditures grew significantly for economic activity (by 64.3%), general government functions (by 37.4%), and the housing and communal services sector (by 33.1%). Expenditures also grew for spiritual and physical development (by 27.3%), healthcare (by 22.2%), and education (by 20.7%). A slight increase was noted in expenditures for public order, security, and judiciary (13.9%), social protection and social security (by 9.3%), and defense (by 9.2%). The actual expenditures of the State budget of Ukraine totaled UAH 26.7 billion, which is 24.8% more year-on-year. In terms of the functional classification of expenditure items, the following were observed compared to February 2011: expenditures for general government functions increased by 40.8% and totaled UAH 3.5 billion; expenditures for defense increased by 9.2% and totaled UAH 940.2 million; expenditures for public order, security, and the judiciary increased by 13.9% and totaled UAH 2.4 billion; expenditures for economic activity increased by 75.2% and totaled UAH 2.4 billion; expenditures for environmental protection increased more than 2.2 times and totaled UAH 213.2 million; expenditures for housing and communal services increased more than 4.6 times to UAH 2.3 million; expenditures for healthcare increased by 24.0% year-on-year and totaled UAH 560.4 million; expenditures for spiritual and physical development increased by 31.2% and amounted to UAH 175.4 million; expenditures for education increased by 12.0% and totaled UAH 2.3 billion; expenditures for social protection and social security increased by 19.6% and amounted to UAH 6.0 billion. The State budget received UAH 154.5 million in repaid credits in February 2012, including remittances to the General Fund of the State budget totaling UAH 131.6 million. Under the State budget, a total of UAH 294.8 million in credits were issued in the period under review. A State budget surplus of UAH 4.5 billion accrued in the reviewed period, which is 7.3% less than the February 2011 surplus. UAH 4.9 billion in State budget debt principal was repaid. Internal debt repayment totaled UAH 4.5 billion, and external debt repayment totaled UAH 377.4 million. State budget borrowing totaled UAH 6.2 billion, including UAH 5.9 billion borrowed for the General Fund of the State budget. Domestic market borrowing totaled UAH 5.9 billion, and borrowing from foreign sources totaled UAH 294.7 million. The State budget received UAH 282.4 million from the privatization of State property. Total local budget revenue (without intergovernmental transfers) amounted to UAH 7.8 billion in February 2012, which is 20.3% more than in 2011. The General Fund of local budgets received UAH 6.5 billion and the Special Fund received UAH 1.3 billion. In regional terms, the highest growth, at +38.9% year-on-year, was observed in