Ukraine stands resilient amid war, sustaining macroeconomic stability – finance ministry
In June of this year, the general fund of Ukraine's state budget earned 133.7 billion hryvnias, according to the press service of the Ministry of Finance, citing the data of the State Treasury.
What is the problem?
Due to the full-scale war, Ukraine's economy collapsed, but not as rapidly as some organizations predicted at the beginning of the war.
In the first nine months of the year, Ukrainian GDP decreased by 30%, as evidenced by the preliminary data of the Ministry of Economy. This means that the most pessimistic forecasts sounded last spring (up to a 45% drop, as expected by the World Bank) may no longer be implemented.
Thanks to the hard work of millions of Ukrainians and the help of the world, Ukraine was able to survive and has good prospects for recovery.
What is the solution?
Ukraine managed to maintain macro-financial stability and attract significant amounts of international aid, which will positively impact the prospects of post-war recovery.
How does it work?
According to the State Treasury, among the payments controlled by the tax and customs authorities, the main revenues were received at the expense of value-added tax on goods imported into the customs territory of Ukraine (UAH 28.7 billion), value-added tax on goods produced in Ukraine (UAH 17.5 billion, with UAH 27.9 billion collected, UAH 10.3 billion reimbursed), and personal income tax and military duty (UAH 15.0 billion).
In addition, Ukraine's budget received UAH 8.8 billion from the excise tax, UAH 4.5 billion in rent payments for subsoil use, UAH 2.6 billion worth of import and export duties, and UAH 2.3 billion from corporate income tax.
Accordingly, the execution of the monthly schedule of income:
- The State Tax Service accounted for 101.1% (+0.6 billion UAH),
- State Customs Service – 106.8% (+ UAH 2.0 billion).
Also, the amount of financial assistance received from partners at the end of the month amounted to 44.4 billion hryvnias.
The United States provided Ukraine with additional financial assistance in the amount of $1.3 billion for recovery after the Russian invasion. Most funds will be directed to reconstructing the country's energy system and critical infrastructure.
The United States money will add to a larger financial aid package from the European Commission, which has offered €50 billion to finance the Ukrainian government's current spending and urgent recovery priorities.
The Board of Directors of the International Monetary Fund completed the first review of the financing program under the Enhanced Financing Mechanism (EFF) for Ukraine.
In turn, Finland provided Ukraine with an additional €29 million in humanitarian aid and development cooperation support.
