In the first quarter of 2023, 61% of the state budget expenditures was accounted for security and defense in Ukraine at the expense of exclusively internal revenues

Under conditions of the war in the first quarter of 2023, 61% of the state budget expenditures was accounted for defense and security in Ukraine at the expense of exclusively internal revenues. This was stated by the Acting Chairman of the Accounting Chamber Andrii Maisner while presenting the Opinion on the results of the analysis of the implementation of the law on the state budget for 2023.

He noted that the revenues of the state budget’s general fund exceeded the target for the first quarter of 2023 by UAH 141 billion, or 57%. It was managed to exceed the state budget revenue plan primarily through the unplanned grants from the World Bank for the budget support. About UAH 134 billion are talked to amount to 25% of all state budget revenues.

Andrii Maisner noted that excluding grants, the general fund revenues was exceeded by UAH 7 billion, or 3% in the first quarter of 2023.

The Acting Chairman of the Accounting Chamber informed that UAH 138 billion, or 100% of the plan, were received from the placement of domestic government bonds in the first quarter of 2023. "At the same time, the National Bank, unlike in the first quarter of the previous year, did not buy military bonds, which is definitely a positive thing," Andrii Maisner added.

The state budget’s general fund received UAH 266 billion from the external creditors, which is UAH 78 billion or 23% less than the reporting period plan, including UAH 177 billion in EU macro-financial assistance; UAH 64 billion in borrowings from the Government of Canada; and UAH 24 billion in loans from the World Bank.

Commenting on the situation with the expenditures of the state budget’s general fund, the Acting Chairman of the Accounting Chamber noted that they were almost UAH 80 billion or 11% less than planned.

"Under the conditions of the russian military aggression against Ukraine and the continuation of martial law, 61% of expenditures were allocated to measures related to the defense and security of the State (UAH 389 billion). These expenditures are fully covered by internal revenue sources (revenues excluding grants, funds from domestic borrowings, loan repayments and privatization of the state property)," Andrii Maisner emphasized.

At the same time, expenditures under five budget programs to provide subventions to local budgets for the implementation of investment projects at the expense of loans (borrowings) attracted by the State to the state budget’s special fund for UAH 4.1 billion have not started.

For example, according to the Ministry of Finance unpaid expenditures under three budget programs of the Ministry of Infrastructure have been caused the need to amend regulations and contracts related to the implementation of the projects due to the reorganization of the Ministry of Regional Development, Building and Housing of Ukraine and the transfer of budget allocations to the Ministry of Infrastructure.

The expenditures on public and publicly guaranteed debt repayment and servicing decreased by 11% compared to the corresponding period of the previous year and amounted to UAH 124 billion, or 15% of total state budget expenditures.