Government of Ukraine Approved Report on State Budget 2022 Performance

On April 25, 2023, the Government adopted a decree of the Cabinet of Ministers of Ukraine "On Approval of the Report on the Implementation of the Law of Ukraine "On the State Budget of Ukraine for 2022", which was drafted by the Ministry of Finance.

Russia's military invasion of Ukraine on February 24, 2022, and the subsequent escalation of hostilities made a serious harm to the Ukrainian economy, which undoubtedly affected the country's budget system.

Since the first days of the full-scale armed aggression against Ukraine, the Government has made efforts to balance the country's financial system by reorienting the budget for military purposes, as well as finding sources of financing for the ever-growing military expenditures, ensuring the operation of critical infrastructure, and making the most necessary social and humanitarian expenditures to support the livelihoods of citizens.

As a result of the daily work of all branches of government in the international arena, we managed to gain the support of world leaders and receive substantial financial assistance in the form of both grants and loans, which allowed us to balance the country's budget and finish 2022 with more optimistic results than expected.

The State Budget revenues amounted to UAH 1,787.7 billion, part of which was grants from international partners (UAH 481.1 billion, or 26.9% of the total state budget revenues for the year).

State Budget expenditures in 2022 reached UAH 2,706 billion, which is UAH 1,214 billion more than in 2021 and 80% more than the amount of expenditures approved by law at the beginning of 2022, with the majority of them being expenditures on national security and defense, which amounted to UAH 1,537 billion in 2022.

Along with defense expenditures, the Government of Ukraine paid considerable attention to financing social expenditures, in particular, to pay various types of assistance to internally displaced persons. For example, compensation of UAH 6,500 was paid for the loss of a job as a result of the war, totaling UAH 30.8 billion under the budget program "eSupport". In addition, UAH 53 billion was directed to provide assistance to more than 2 million IDPs to cover their living expenses.

Main results of the State Budget performance in 2022:

• the State Budget deficit was financed well below the planned limit (actual - UAH 914.9 billion, 17.6% of GDP, compared with the plan of 31.7% of GDP);
• allocation of funds for Defense and Security in the amount of 29.6% of GDP (5.8 times more than in 2021);
• ensuring further growth of the minimum wage, the subsistence level, and other types of social payments and benefits;
• continuing to increase the level of pensions for citizens;
• providing benefits and subsidies to the population in cash.

Ukraine received the Global Capital Bond Awards 2022 for successful public debt management operations in 2022 and was ranked second in the Most Impressive Issuer in the CEE region category. In addition, Ukraine received the IFR Awards 2022 in the category Financing Package and EMEA Restructuring from the International Financing Review of the Refinitiv Group. The Ministry of Finance of Ukraine won the Risk Awards 2023 in the category Sovereign Asset Risk Manager of the Year from Risk.net.

The Cabinet of Ministers of Ukraine also adopted a resolution "On Approval of the Report on the Implementation of the Law of Ukraine "On the State Budget of Ukraine for 2021", which was not approved last year due to the start of martial law.