The Verkhovna Rada Committee on Budget Issues considered the Opinion of the Accounting Chamber on the implementation of the State Budget of Ukraine in the first quarter of 2025

At the meeting of the Committee of the Verkhovna Rada of Ukraine on Budget on July 7, the people's deputies of Ukraine considered the conclusion of the Accounting Chamber on the results of the analysis of the implementation of the Law on the State Budget of Ukraine for 2025 in the first quarter and information on the current state of budget implementation. The meeting was attended by the Head of the Accounting Chamber Olga Pishchanska, who presented the results of the analysis of the implementation of the State Budget in January-March of this year. Representatives of the Ministry of Finance of Ukraine and the Ministry of Defense of Ukraine also participated in the meeting.

In particular, the Head of the Accounting Chamber noted that, as in previous years, international aid significantly contributed to maintaining the financial stability of the state budget, and revenues from domestic sources increased by 40% compared to the same period in 2024. However, not all planned expenditures were implemented. The main reasons for this – untimely approval of procedures for the use of funds and passports of budget programs, as well as other reasons.

The Chairman of the Accounting Chamber informed the people's deputies that, as in the previous three years, the state budget for the implementation of necessary expenditures was largely contributed to by loans and non-repayable assistance from international partners. In the total volume of external revenues in the first quarter of 2025 (363 billion UAH),the share of non-repayable aid increased, compared to the first quarter of 2024, from 9 to 27%.

At the same time, state budget revenues from domestic sources amounted to 1.1 trillion UAH, which is 40% more compared to the same period of the previous year. The significant growth in revenues (by 44% compared to the first quarter of 2024) is primarily explained by a 2.2-fold increase in the volume of own revenues of budgetary institutions.

The volume of state budget expenditures in January - March 2025 amounted to 1.2 trillion UAH (27.4% of the annual plan). Expenditures increased by 38.5% compared to the corresponding period of 2024, primarily due to their increase in measures in the field of security and defense. The share of these expenditures in the total volume increased to 73.5%. The largest increase occurred under the budget programs of the Ministry of Defense of Ukraine, in particular for the purchase, modernization and repair of weapons, military equipment, means and equipment.

In the first quarter of 2025, overdue receivables increased by 23.6%, almost 90% of which was accounted for by the Ministry of Defense of Ukraine. Olga Pishchanska noted that as of now, the debt situation has improved to some extent.

As for the actual underperformance of the general fund expenditure plan (14%),the main reasons were:

- failure to approve the procedures for the use of funds within the established deadlines (74% were not approved within 30 days);

- untimely approval of budget program passports in agreement with the Ministry of Finance (28% were not approved within 45 days);

- violation of contract terms regarding the terms of delivery of goods, performance of works and provision of services (including defense purposes),etc.;

Following the results of consideration of this issue, the VRU Committee took note of the information of the Accounting Chamber and provided the Cabinet of Ministers  recommendations aimed at improving budget execution, in particular:

- analyze the state of execution of expenditures of the general fund of the state budget in 2025, assessing the effectiveness and timeliness of the implementation of relevant budget programs and preparing proposals for the redistribution of relevant funds for urgent general public needs;

- instruct the main administrators of state budget funds to take measures to repay budget payables and receivables;

- implement or complete the distribution of subventions from the state budget between local budgets, etc.

Also at the meeting on July 7, the VRU Committee considered the draft law “On Amendments to the Law of Ukraine “On the State Budget of Ukraine for 2025” regarding the financial provision of the security and defense sector and the resolution of priority issues” (reg. number № 13439),submitted by the Government. The previously mentioned issue was discussed by members of the Subcommittee on State Budget Expenditures of the relevant Committee of the Verkhovna Rada.  

Also on the agenda were considered bills amending Section VI “Final and Transitional Provisions” of the Budget Code of Ukraine regarding support for defense-industrial complex enterprises (registration number № 13422 and alternative to it № 13422-1). The Verkhovna Rada Committee on Budget plans to finalize the documents for the second reading.

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