Financial Outlook: How Ukraine’s Budget Revenues Changed in July and Their Implications for the Economy
In July 2023, Ukraine’s national budget experienced significant fluctuations in its financial indicators.
The total and special funds of the state treasury received approximately 225 billion hryvnias from taxes, fees, and other mandatory payments.
This is a sharp decline compared to the previous month, June, when the collection exceeded 313 billion hryvnias.
According to data from the Ministry of Finance and the State Treasury Service, the revenue to the general fund of the state budget in July amounted to around 163 billion hryvnias.
This represents a tenfold decrease from June, when nearly half of the 313 billion hryvnias collected consisted of dividends from state-owned companies.
The decrease in income is primarily due to reduced tax revenues from major sources such as personal income tax, VAT, excise taxes, and income from state enterprises.
In July, the State Tax Service transferred 88.9 billion hryvnias to the budget, including 32 billion from personal income tax and military levy, while VAT collections dropped to 26.9 billion hryvnias due to refunds and lower than expected income.
Additionally, the government received 15.8 billion hryvnias from excises, with state enterprise dividends accounting for 4.9 billion hryvnias.
Customs revenue totaled 65 billion hryvnias, and social funds collected nearly 50 billion hryvnias from Unified Social Contribution.
These declines highlight the challenges Ukraine faces in maintaining its budget amid ongoing conflict and economic instability.
Simultaneously, the parliament approved a budgetary increase of over 412 billion hryvnias for defense spending, underscoring national security priorities.
The support for bill №13573 was secured by 332 deputies, confirming Ukraine's commitment to strengthening its armed forces with additional resources.