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6.0 Public Sector 6.1 Budget
Ukraine needs $9B every month to cover the budget deficit. According to President Zelenskyy's adviser, Ukraine needs $9B monthly to cover the budget deficit, which is almost twice as much as previously requested. Earlier, the Ministry of Finance stated that the estimate of the deficit was $5B per month, which is much more than provided by the Western allies. Instead, Ustenko is convinced that Ukraine needs an additional $4B per month for the next three months. “These funds will be needed to cover the costs of emergency housing and housing repairs for millions of people. The money will also be needed to finance a basic minimum income for people who have lost their jobs. Ukraine will try to survive in any case, but without the financial support of our allies, it will not only be difficult but will be impossible," he added.
Foreign funds cover only half of Ukraine's budget deficit. According to the Ukraine Ministry of Finance, funds from the international community in March-June covered only half of Ukraine's budget needs of $22B. Out of the $22B needed to cover the budget deficit and repay debts in March-June, Ukraine received only $10.2B in foreign loans and grants. At the same time, the dynamics of these receipts allow Ukraine to count on at least a partial covering of its deficit due to international aid during the year's second half. For example, considering the funds received at the beginning of July, budget receipts from February 24 to July 5 exceeded $11B. Since the war, Ukraine’s partners have pledged to provide loans and grants worth $32B.
6.1.1 Budget dynamics - results
Ukraine’s July state budget revenue exceeded the plan by UAH 20B. The general fund of the state budget received UAH 64B in July, which is UAH 24.5B, or 61.9%, more than in July last year, announced the head of the finance committee, Danylo Hetmantsev. In total, in seven months of 2022, the general fund of the state budget has received UAH 413.9B, which is UAH 83.4B, or 25.2%, more than in the same period of last year. At the same time, receipts from customs in July reached UAH 22.9B, 82%, or UAH 12.6B, more than in June, when benefits for importing goods into Ukraine were in effect. Thus, the abolition of customs benefits in one month resulted in additional revenue to the budget amounting to UAH 10.3B ($28M)
Postponing payments on Eurobonds will save Ukraine $5B. By deferring debt service payments on Eurobonds and warrants over the next two years, Ukraine will save $5B. This money will be directed to urgent needs: social protection and financial support for military personnel, said the Ukraine Minister of Finance, Serhii Marchenko. He thanked the G7 member countries and members of the Paris Club of creditors, who agreed to postpone interest payments on the main debt for two years. "We hope that commercial investors will also accept the conditions that we have offered them. After all, we have 13 issues of securities, and for each of them, we have offered investors a postponement of the interest payment period and repayment of the loan," added Marchenko.
43 UKRAINE Country Report XXXX 2018 www.intellinews.com