The shortcomings of macroeconomic forecasting, in particular regarding the hryvnia exchange rate, led the state budget falling short of UAH 2.3 billion ($94 million) in January, said head of the Accounts Chamber of Ukraine, Valeriy Patskan.
“The actual hryvnia exchange rate in January on average amounted to UAH 24.1 to the dollar, while budget revenue calculations for 2020 suggested UAH 27 to the dollar. According to the Accounting Chamber, this led to a shortfall worth UAH 2.3 billion,” Patskan told a meeting of the Verkhovna Rada budget committee, the chamber’s press service reports.
The general fund of the state budget in January was fulfilled by 75.5% (UAH 13.8 billion, or $564 million short of plan).
“Such a significant non-compliance is caused primarily by the low level of customs payments. Thus, revenues, the collection of which is controlled by customs authorities, fell short of UAH 7.9 billion ($322.9 million), or 30.4%,” the press service quoted Patskan as saying.
Another factor was a decrease in imports of goods by 1% YoY, given a forecast growth of 11.3% for 2020. The value added tax plan for goods (works, services) produced in Ukraine, taking into account budgetary reimbursement, fell short of UAH 2.5 billion ($102.2 million), or by 26.7%.
“We have the last year’s situation repeating, where in January we’re seeing budget refunds making up after being held back at the end of last year. In January, UAH 18 billion was reimbursed, up 1.8-fold MoM (UAH 9.8 billion),” the press service of the Accounts Chamber quoted Patskan as saying.
The official added that the revenues from excise tax on excisable goods produced in Ukraine fell short of UAH 2.2 billion ($89.9 million), or by 43.7%.
“It’s tobacco, again. The Accounts Chamber paid attention to the problems of planning and administering this tax over the previous year and provided relevant proposals. However, we again read the explanations of the Ministry of Finance that payers were selling products for which the excise tax had been paid. That is, until the next increase in tax rates,” Patskan said.
Under these conditions, the expenses of the general fund amounted to UAH 11.5 billion ($470 million), or 15.7% lower than the plan for January, in particular: UAH 2.9 billion ($118 million), or 10.4%, on social security; UAH 2.4 billion ($98 million), or 35.3%, on public debt servicing; and UAH 1.6 billion ($65 million), or 10.6%, on wages. (UNIAN/Business World Magazine)
