Page 34 - UKRRptAug23

6.1.1 Budget dynamics - results
In July, the Ministry of Finance collected $5.3B in revenue. Since the beginning of the year, the Ministry of Finance has gathered more than $28B for the budget, and in July alone, $5.3B. Grant funds compose about 25% of the total financial assistance. Among the donors in July 2023: the EU allocated $1.67B of concessional financing, Japan provided $1.5B of concessional financing, the US sent $1.25B in grants, and the International Monetary Fund dedicated $890M of concessional financing. This international aid is directed to the funding of priority social expenditures, including the provision of wages for workers in the education and health sectors, humanitarian needs, and social protection for the population. In the seven months of 2023, the Ministry of Finance of Ukraine attracted more than $28B in external financing for the state budget's urgent needs.
The Ukrainian budget received over UAH 245B ($6.7B) in June. Parliament member Yaroslav Zheleznyak said the budget received UAH 245B and fulfilled all the monthly government needs. Through its internal resources, the state received: UAH 52.1B from tax, +0.9% more than was planned, or an additional UAH 500M; UAH 36.9B from customs +5.7% above plan, or +UAH 2B; and a record UAH 46.4B from military bonds. Thus, internal resources brought UAH 135.4B to the treasury. At the same time, external sources combined for a total of $3B or UAH 110B. The largest donor was the European Union, with $1.64B in May. The US committed $1.2B, the World Bank dedicated $104M, and Finland provided $15M. Moreover, 40% of the foreign funds are grants that will not have to be repaid.
6.1.2 Budget dynamics - specific issues...
Almost all Ukrainian businesses resort to tax optimization schemes. 70% of Ukrainian companies are not satisfied with the current tax system, and up to 90% of enterprises resort to optimization schemes, shows a survey by the InfoSapiens agency. In total, 56% of respondents believe it is impossible to work efficiently and pay all taxes without resorting to load optimization. 58% of micro-businesses share the same opinion. Only 9% claim that work in their industries without tax optimization is still possible. And every third respondent confirmed this with reservations: "Yes, to some extent." Tax optimization is the reduction of tax liability through purposeful and lawful actions by the taxpayer, including the full use of all benefits, tax exemptions, and other legal advantages the law provides. Under the proposed 10-10-10 tax reform,
34 UKRAINE Country Report August 2023 www.intellinews.com