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Rada on Friday, when ex-speaker of parliament Dmytro Razumkov reminded him of the promise not to raise taxes after they are restored until pre-war level.
Talk about 2025 state budget deficit premature; Finance Ministry looking for extra internal sources of defence financing - minister It is too early to talk about the parameters of the budget deficit for next year at the moment, says Finance Minister Serhiy Marchenko, since the key parameter that determines it will be the intensity of hostilities.
In May, Ukraine collected 9% more taxes and payments, but the G7 called on the authorities to fight counterfeiting more actively to fill the budget. According to the Ministry of Finance, the state budget's general fund received ₴151.6B in taxes, fees, and mandatory payments in May. Contributions were higher than planned by 8.6% (+₴12B). At the same time, the ambassadors of the G7 countries called on Ukrainian government officials to strengthen the fight against counterfeit excise goods to maximize internal budget revenues, particularly illegal trade in tobacco, alcohol, and oil products.
Russian state budget revenue from the sale of oil in May increased by 39% compared to May last year, reflecting rising oil prices and the country's adaptation to international sanctions. According to Bloomberg, oil-related tax revenue rose to ₽632.5B, or $7.1B, last month. Total oil and gas revenues rose 39% to ₽793.7B. This trend is associated with increased prices for Urals oil, Russia's key export blend.
6.1.2 Budget dynamics - specific issues...
Ukraine needs an external financing plan until 2027. To overcome macroeconomic risks and maintain macroeconomic stability, Ukraine and its partners from the Donor Coordination Platform must develop a long-term strategy for external financing and support for reforms until 2027, according to a joint report from the Ministry of Economy and the Ministry of Finance. In addition, it is essential to facilitate a faster recovery by removing the main constraints - ensuring air defense, meeting energy needs, ensuring stable and predictable access to foreign markets, overcoming labor shortages, restoring critical logistics, and accessing EU funds. At the same time, it is a priority to expand growth potential by complementing the necessary structural reforms with commitments from investment partners and transferring technologies that will increase productivity and capital accumulation. While external donors will continue to be an essential source of funding, there is a need for greater independence in generating tax and non-tax revenues to finance the budget for defense-related needs.
6.1.3 Budget dynamics - funding
Ukraine has received a tranche of financial support from the EU of €1.9B under the Ukraine Facility program, said Prime Minister Denys Shmyhal. According to him, the EU's total budget support since the beginning of this year has already reached almost €8B.
Ukraine presents the first programs within the Ukraine Investment Framework.The Ministry of Economy presented an overview of new international financial institute (IFI) programs worth €1.4B, which will be
73 UKRAINE Country Report July 2024 www.intellinews.com