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trillion and UAH1.183 trillion, respectively.
The general fund of the national budget of Ukraine in February 2021 was reduced to a deficit of UAH18bn, the Finance Ministry of Ukraine said.
According to the Finance Ministry, referring to the operational data of the State Treasury Service, in January and February 2021, the income of the general fund amounted to UAH124.9bn (4% more than the list), expenses to UAH154.2bn, which is 90.7% of spending report.
"Financing of social spending, defense spending, debt service and subventions, subsidies to local budgets were carried out in full in accordance with the list on the basis of payment orders," the Finance Ministry said.
According to him, the actual public borrowings in the general fund of the national budget in January and February amounted to UAH74.3bn, or 68.6% of the planned for this period. The placement of government domestic loan bonds to finance the national budget brought UAH74.3bn, including UAH14bn in foreign currency.
"No funds were received from external sources as of March 1, 2021," the Finance Ministry said.
In January and February 2021, repayments amounted to UAH51.5bn, which is 2.1% less than the plan, service to UAH13.8bn (7.8% lower than planned).
6.1.2 Budget dynamics - specific issues...
6.1.3 Budget dynamics - funding
Domestic and foreign investors will get import tax breaks under a measure adopted by Ukraine’s Parliament on March 3. Import transactions by major investors would be exempt from value-added taxes until Jan. 1, 2035, under the legislation approved Tuesday. The list and volumes of exempt products will be approved by Ukraine’s Cabinet of Ministers. The measure now heads to the president’s desk for his signature and becomes effective upon publication in the official gazette.
Ukraine’s Finance Minister Serhiy Marchenko stated that the cooperation with the IMF is a basic macro scenario for this year, according to his interview published by UNIAN news agency on Feb 11. He expects that cooperation with the IMF will allow the government to count on other multilateral loans for about $1.4bn, including two tranches for a total of $750mn from the World Bank and a tranche for €600mn from the EU. Meanwhile, Marchenko did not provide any date of a possible IMF deal, only stating that he expects to receive funds under the current IMF Stand-by program by the end of 2021, when the program expires.
Among the outstanding issues with the IMF, Marchenko listed gas pricing for households,” separate questions” about Ukraine’s anticorruption infrastructure and judiciary reform, as well as unmet structural benchmarks under the latest memorandum with the IMF, including amendments to the banking legislation. He also said that Ukraine has started a discussion with IMF representatives about state budget parameters for 2022, adding that the IMF is insisting on the
34 UKRAINE Country Report March 2021 www.intellinews.com
