War in Ukraine – the Cabinet spoke about the level of decline in customs and tax revenues to the budget – UNIAN

The state budget of Ukraine has now been adjusted in accordance with martial law and reduced to protected spending.

State budget revenues are still fluctuating / photo

State budget Ukraine receives 30% of customs and 70% of tax revenues from the pre-war level.

As reported press office European Business Association, said the Minister of Finance of Ukraine Serhiy Marchenko in a conversation during a meeting with the companies of the association.

“The state budget of Ukraine has now been adjusted in accordance with martial law and reduced to protected spending. Now spending is relatively stable – primarily on security and defense, social protection, education and medicine,” the report says.

According to Marchenko, state budget revenues are still fluctuating. As of today, customs provides about 30% of pre-war revenues – in May it was 9.5 billion hryvnia, in April – 8 billion hryvnia and 7 billion hryvnia in March. A number of indulgences were carried out on customs, in particular, the abolition of VAT and import duties.

It is noted that the situation in the tax sphere is somewhat better, now the State Tax Service provides about 70% of pre-war revenues.

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“The state’s expenses are now covered, primarily through tax payments, which, moreover, are the only possible source of financing military needs, as well as through the funds of international partners, which are directed to social and humanitarian needs and military bonds,” the statement says. message.

In the budget process, the Ministry of Finance is considering a baseline scenario for the duration of the war until the end of the year, while at the same time, a group of experts is now working on modeling various macroeconomic scenarios for 2023. According to the Ministry of Finance, this year we should expect a contraction of the economy up to 30%. However, a lot will depend on the further deployment of hostilities, the deblockade of seaports, and so on.

Inflation in Ukraine has accelerated to 18%. But, according to the minister, inflation of up to 20% is an acceptable indicator in the realities of breaks in supply chains, the critical absence of certain goods and problems with fuel, which launched a chain increase in prices.

As UNIAN reported earlier, the inflation rate in Ukraine after a radical increase in the discount rate by the National Bank may decrease to 10-15%.

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