The Revenue Part of the State budget-2020 is Overperformed

The annual budget revenues indicators for 2020 were performed in full, despite the difficult situation at the beginning of the year (in January-April the general fund's revenues underperformance amounted to UAH 44.2 billion).

As of January 1, 2021, there is a record-high amount of funds at the State Treasury accounts - UAH 70.7 billion (UAH 12 billion in Hryvnia and UAH 58.7 billion equivalent in foreign currencies). And this is despite the fact that 2020 was a crisis year around the world due to the coronavirus pandemic.

This shows that the country has managed to cope with COVID-19 challenges. The state guarantees that all necessary expenses will be financed in full.

According to preliminary data of the State Treasury Service, in 2020, the general fund of the state budget received UAH 877.6 billion, the budget monthly plan was executed by 102.2%.

The revenues from payments controlled by the State Tax Service amounted to UAH 507.5 billion, or 110.7% which is UAH 49.2 billion more than the annual plan. At the same time, the VAT refund amounted to UAH 143.1 billion.

The overperformance was caused by the following payments:

• VAT (+ UAH 40.2 billion), in particular by improving the system of monitoring the compliance of tax invoices with the criteria for assessing the level of risk, the elimination of VAT fraud schemes,
• personal income tax and military fee (+ UAH 6.0 billion),
• excise tax on goods produced in Ukraine (+ UAH 4.8 billion),

The revenues of the general fund of the state budget from customs payments were UAH 297.0 billion, the budget annual plan was performed by 91.2%. At the same time, the budget monthly plan in December was overperformed by the State Customs Service by 23.5%, or + UAH 6.2 billion.

The overperformance of the annual budget revenues indicators, active and successful work of the Government in December 2020 to attract resources from domestic and foreign markets, enabled the financing of budget expenditures.

According to data, provided by the State Treasury Service of Ukraine, the expenditures of the general fund of the state budget amounted to UAH 1098.3 billion, or 96.7% of the budget annual plan (compared to 90.3% during the period of January-November 2020). At the same time, social expenditures, defense expenditures, debt, and transfers to local budgets are fully funded in accordance with a budget plan and payment orders.

In 2020, the state budget was executed with a deficit of UAH 215.5 billion, while the general fund's planned figure for the reporting period was UAH 274.5 billion.

Actual borrowings to the general fund of the state budget in 2020 amounted to UAH 621.5 billion or 93.8% of the planned amount for this period.

In total, government domestic borrowings in 2020 amounted to UAH 389.2 billion (94.6% of the plan), including:

• domestic government bond placements for the state budget financing amounted to UAH 382.4 billion, including UAH 130.8 billion from government bonds in foreign currency (USD 3.9 billion and EUR 0.8 billion);
• domestic bonds in the amount of UAH 6.8 billion were issued for the subsequent acquisition of shares of the state-owned JSC "Ukreximbank" in exchange for such bonds.

The borrowings' amount from external sources for this period was UAH 232.3 billion (92.4% of the plan), including:

• UAH 33.9 billion (EUR 1.25 billion) by placing 10-year Eurobonds at 4.375%;
• UAH 8.2 billion (USD 291.0 million) - disbursements of IBRD loans within the “Social Safety Nets Modernization Project”, "Serving People, Improving Health Project "and the Second Additional Financing, aimed at overcoming the consequences of the COVID-19 pandemic, under the "Social Safety Nets Modernization Project";
• UAH 55.2 billion (SDR 1.5 billion) of receiving the tranche of the IMF loan within the Stand-by 2020 Program;
• UAH 15.0 billion (EUR 500 million) - EU Macro-Financial Assistance;
• UAH 55.4 billion (USD 2.0 billion) by placing the 12-year Eurobonds at 7.253%, including UAH 24.1 billion (USD 0.9 billion) for the early buy-back of 2015 external government bonds;
• UAH 9.0 billion (USD 328.8 million)- private placement of the 2015 second series external government bonds additional issue for the purpose of a transaction with the state derivatives;
• UAH 8.3 billion (EUR 250.0 million) - loans from Cargill Financial Services International, Inc.
• UAH 16.7 billion (USD 0.6 billion) by additional placing the 12-year Eurobonds at 7.253%;
• UAH 9.6 billion (EUR 340.7 million) - loans from Deutsche Bank AG London.

The principal repayment of public debt in 2020 amounted to UAH 385.5 billion, interest debt-service payments were UAH 119.6 billion.