Ukraine sees US$1.9 bln budget deficit in Jan-July

The deficit of Ukraine's national budget in January-July 2020 was estimated at UAH 51.195 billion, or US$1.9 billion, against UAH 2.857 billion (104.3 million) in deficit reported year-over-year (y-o-y), before the coronavirus-related crisis.

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The deficit of the country's consolidated budget over the period under review was UAH 32.067 billion (US$1.2 billion) against UAH 22.7 billion (US$828.8 million) in surplus y-o-y, according to Ukraine's Treasury Service.

Forecasts

• On March 31, 2020, Deputy Director of the Center for Economic Strategy Maria Repko said the 2020 national budget deficit might increase fivefold.
• In April 2020, the Verkhovna Rada, Ukraine's parliament, introduced the so-called "anti-crisis" changes to the national budget for 2020. In particular, the budget deficit almost tripled, to UAH 298.4 billion (US$10.9 billion), or 7.5% of GDP.
• On July 8, 2020, Ukrainian Prime Minister Denys Shmyhal said the issue of covering the current national budget deficit, which is about UAH 300 billion, or 7.5% of GDP, is not significant for the Cabinet.
• On August 20, 2020, the Finance Ministry promised to execute the budget in full by the end of the year.