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 76.9 billion in January-March 2012, which is UAH 11.1 billion or 16.9% more year-on-year. Budget revenue increased for nearly all items, with the enterprise profit tax increasing by UAH 2.8 billion or 24.9%, value-added tax by UAH 2.2 billion or 7.6%, and excise tax by UAH 1.2 billion or 18.0%. Taxes on international trade and external transactions increased by UAH 0.4 billion or 19.6%, and rent and fees on fuel and energy resources increased by UAH 0.3 billion or 5.4%. The expenditures of the consolidated budget of Ukraine totaled UAH 38.3 billion in March 2012, which is 9.4% more against previous months and 14.7% more year-on-year. Compared to 2011, consolidated budget expenditures increased for nearly all items by budgetary functional classification. The highest growth is noted in expenditures for economic activity, which increased by 41.0% against March 2011 and totaled UAH 5.0 billion. Expenditures for environmental protection grew substantially (by 33.8%), and totaled UAH 330.8 million. Also, growth was recorded in expenditures for healthcare (20.3%), spiritual and physical development (19.8%), education (19.7%), and public order, security, and judiciary (13.8%). The actual expenditures of the State budget of Ukraine totaled UAH 29.1 billion, which is UAH 2.9 billion or 11.1% more year-on-year. In terms of the functional classification of expenditure items, the following trends were observed compared to March 2011: expenditures for general government functions decreased by 2.6% and totaled UAH 3.6 billion; expenditures for defense increased by 6.6% and totaled UAH 1.1 million; expenditures for public order, security, and the judiciary increased by 14.0% and totaled UAH 2.8 billion; expenditures for economic activity increased by 37.7% and amounted to UAH 4.2 billion; expenditures for environmental protection increased by 20.6% to UAH 224.1 million; expenditures for the housing and communal services sector increased by 5.4% to UAH 2.7 million; expenditures for healthcare increased by 20.7% and totaled UAH 819.0 million; expenditures for spiritual and physical development increased by 7.5% and amounted to UAH 265.4 million; expenditures for education increased by 12.3% and totaled UAH 2.7 billion; expenditures for social protection and social security remained at last year's level and amounted to UAH 5.1 billion. The State budget provided UAH 808.8 million for covering the Pension Fund deficit, which is 5.5 times less than in March 2011. The State budget received UAH 60.3 million in repaid credits in March 2012, including remittances to the General Fund of the State budget amounting to UAH 29 million. The State budget issued a total of UAH 110.9 million in credits in the reporting period. Unlike the surpluses in January-February 2012, a State budget deficit of UAH 3.7 billion accrued in March, which is 24.5% less than the March 2011 deficit. State budget debt principal payments totaled UAH 5.5 billion, which is 34.3% less year-on-year. Internal debt payments totaled UAH 4.6 billion, and external debt payments totaled UAH 868.5 million. The State budget borrowing totaled UAH 16.9 billion, with UAH 16.7 billion (including UAH 7.0 billion for the issuance of internal government bonds for replenishing the authorized capital of the Naftogaz of Ukraine National Joint Stock Company) incurred by the General Fund of the State budget. Domestic market borrowing totaled UAH 16.7 billion, and borrowing from sources abroad totaled UAH 169.7 million. The State budget received UAH 1.4 billion from the privatization of State property. Total local budget revenue (without intergovernmental transfers