The State Budget Performance in September 2020

According to preliminary data of the State Treasury Service, in September 2020, the general fund of the state budget received UAH 61.1 billion, the budget monthly plan was executed by 115.8% or UAH +8.4 billion.

The revenues from payments controlled by the State Tax Service amounted to UAH 31.6 billion, the planned indicator was overperformed by 136.9%, or + UAH 8.5 billion.

The overperformance was caused by the following payments:
- VAT (+ UAH 5.2 billion), in particular by improving the system of monitoring the compliance of tax invoices with the criteria for assessing the level of risk, the elimination of VAT fraud schemes,
- an excise tax on tobacco products (+ UAH 1.1 billion),
- fee for the use of mineral resources (+ UAH 0.6 billion),
- personal income tax and military fee (+ UAH 2.1 billion) due to the gradual recovery of economic activity and the increase in the minimum wage from September 1 to 5,000 hryvnias.

The revenues of the general fund of the state budget from customs payments in September 2020 were UAH 27.0 billion, the budget monthly plan was performed by 100.7% or + UAH 0.2 billion.

Over the past five months of this year, the underperformance of the general fund of the state budget, compared to January-April, decreased by UAH 34.2 billion - to "minus" UAH 10.0 billion, resulting in the improved cumulative performance of the general fund of the state budget to 98.5% in January -September (in January-April 2020, the performance was 86.1% or UAH "- 44.2" billion).

According to the State Treasury data in January-September 2020, the expenditures of the general fund of the state budget amounted to UAH 750.3 billion, or 88.9% of the budget monthly plan. At the same time, social expenditures, defense expenditures, debt and transfers to local budgets are fully funded in accordance with a budget plan and payment orders.

In January-September 2020, the state budget was executed with a deficit of UAH 80.6 billion, including the deficit of the general fund of UAH 93.2 billion, while the general fund's planned figure for the reporting period was UAH 177.5 billion.

Actual borrowings to the general fund of the state budget in January-September amounted to UAH 399.3 billion or 76.9% of the planned amount for this period.

The total borrowings for the state budget financing from the domestic bonds placements amount to UAH 219.7 billion (80.7% of the plan), including 87.7 billion hryvnias from government bonds in foreign currency (USD 2.6 billion and EUR 0.7 billion).

The borrowings' amount from external sources was UAH 179.6 billion (72.6% of the plan), in particular:
UAH 33.9 billion (EUR 1.25 billion) by placing 10-year Eurobonds at 4.375%;
UAH 55.2 billion (SDR 1.5 billion) of receiving the first tranche of the IMF loan within the Stand-by 2020 Program;
UAH 15.0 billion (EUR 500 million) - EU macro-financial assistance;
UAH 2.4 billion (USD 86.0 million) - disbursements of IBRD loans within the “Social Safety Nets Modernization Project” and “Serving People Improving Health Project”;
UAH 55.4 billion by placing the 12-year Eurobonds in the amount of USD 2.0 billion at 7.253%, including UAH 24.1 billion (USD 0.9 billion) for the early buy-back of 2015 external government bonds maturing in 2021-2022;
UAH 9.0 billion - private placement of the 2015 second series external government bonds additional issue in the amount of USD 328.8 million for the purpose of a transaction with the state derivatives;
UAH 8.3 billion (EUR 250.0 million) - loans from Cargill Financial Services International, Inc.

The repayment of public debt in January-September amounted to UAH 330.6 billion (98.8% of the plan), debt-service payments were UAH 98.4 billion (97.4% of the plan).