Ukraine's economy dropped 2.4-fold deeper than envisioned by state budget, - Accounting Chamber of Ukraine

The drop in Ukraine's real gross domestic product in January-September 2015 by 2.4 times exceeds the planned target of this year's state budget.

This is stated in a resolution by the Accounting Chamber of Ukraine on the implementation of the state budget in the first nine months of 2015, Censor.NET reports citing UNIAN.

As noted, the economic dynamics in January-September was affected by the decrease of domestic market solvency, deterioration of foreign trade terms, and military operations in the east of Ukraine.

According to the chamber, in the first nine months of 2015, the budget saw a surplus in the amount of UAH 8.8 bln (about $345.4 mln), however, the funds allocated to support Naftohaz Ukrainy [national oil and gas company - ed.], state-owned banks, and the Deposit Guarantee Fund, including at the expense of domestic treasury bonds, amounted to UAH 58.5 bln (about $2.29 bln). In order to finance the state budget, government loans were attracted, making 35.2 percent of the total state budget inflow.

Read more: Finance Ministry to increase army expenses by 10 bln UAH

The chamber notes that the devaluation of the official exchange rate of hryvnia to foreign currencies remained one of the main preconditions for increasing state budget revenues. In particular, the official exchange rate is used to calculate VAT, excise tax on goods imported into Ukraine, international trade and external operations taxes. The total share of the mentioned taxes amounted to 37.6 percent of budget revenues in the first nine months of this year.

At the same time, the official exchange rate is taken into account when repaying foreign and domestic currency debts, as well as servicing state debt, maintaining foreign diplomatic missions, paying contributions to international organizations. The total share of such payments made 10.1 percent of budget expenditures. In addition, given a high share of consumed imports (over 40 percent), devaluation of the national currency has become one of the key factors of inflation growth.
Источник: https://en.censor.net.ua/n362654