The 2022 budget deficit amounted to UAH 909.5 billion, but Ukraine maintains financial stability

According to the Ministry of Finance of Ukraine, the general fund of the state budget for 2022 was reduced to a deficit of UAH 909.5 billion.

Compared to the previous year, the budget deficit increased by more than 5 times, but it was financed thanks to borrowings, the volume of which amounted to UAH 1,261.1 billion, of which international credit assistance – UAH 564.2 billion, placement of OVDP bonds – UAH 666.9 billion, proceeds from OVDP for recapitalization of the Ukrainian Financial Housing Company - UAH 30 billion.

The revenues of the general budget in 2022 amounted to UAH 1,491.1 billion, in particular:

• VAT for goods imported into the customs territory of Ukraine - UAH 253 billion (UAH 380.3 billion in 2021);
• VAT on goods produced in Ukraine - UAH 213.9 billion (UAH 155.8 billion in 2021);
• personal income tax personnel and military levy - UAH 148.4 billion (UAH 137.6 billion);
• corporate income tax – UAH 117 billion (UAH 147.8 billion);
• rent for subsoil use - UAH 81 billion (UAH 53.5 billion);
• excise tax – UAH 78.9 billion (UAH 68.7 billion);
• import and export duties - UAH 21 billion (UAH 26.6 billion).

Another UAH 480.6 billion was added to the general fund of the budget during the year in the form of grant aid.

Expenditures of the general fund in 2022 amounted to 2,410 billion UAH, in particular in December - a record 330.5 billion UAH.

Starting from February 24 and until December 31, 2022, the government raised UAH 152.3906 billion, $1.929 billion, and €977.3 million through the placement of OVDP bonds. UAH 213.3377 billion, $2.7933 billion and €662.6 million were allocated to the repayment of domestic securities during this period. During this period, the maximum interest rate for hryvnia OVDP bonds reached 19.5%, for dollar bonds - 4.5%, and for euro bonds - 3% per annum.

If in March, September and November more funds were attracted than paid for bonds, then from April to August, in October and December repayments exceeded borrowing, in particular in December - by UAH 15.4415 billion.

The largest volume of OVDP is held by banks - primary dealers. The second largest in terms of volume is the portfolio of military bonds owned by citizens and enterprises of Ukraine. It consists of:

• UAH 20,248.8 million or 20.2% of the total volume of purchased hryvnia military government bonds (as of December 26 — UAH 19,590.9 million or 20.0%);
• $300.5 million or 29.1% of the total volume of military government bonds, denominated in dollars. USA (as of December 26 — $286.6 million or 25.8%);
• €86.8 million or 17.3% of the total volume of OVDP denominated in euros (as of December 26 — €86.7 million or 17.3%).

Non-residents own military government bonds worth UAH 2.6819 billion and $9 million.

According to preliminary data, on December 1, Ukraine's international reserves amounted to $27.9514 billion, while on the morning of February 24, they amounted to $27.4222 billion. In November, they grew by 10.7% thanks to stable inflows of international aid, a reduction in currency sales by the National Bank and moderate debt payments in foreign currency.