Ukraine: Budget Deficit Grows Considerably

Politics ♦ Published: February 20, 2013; 19:51 ♦ (Vindobona)

General government deficit increased to 5.5% of GDP in 2012 (from 4.2% in 2011) amid feeble tax revenue performance, Raiffeisen Research says.

Ukraine: Budget Deficit Grows Considerably / Picture: ©

According to the Ministry of Finance, central budget revenues amounted to UAH 346 bn in 2012, 10% increase in yoy terms (down from 22% yoy growth in 2011). At the same time, the budget revenues fell by 10% below the plan, which is equivalent to UAH 37.3 bn (2.7% of GDP). The gap in the budget revenues is mostly attributed to poor tax collection - 11.7% below the plan. In…