In fourth quarter 2015 general budget revenues increased 50.0% y/y up, general budget spending increased 55.0% y/y.The resulting rate of the consolidated budget deficit reached 1.6% of GDP.
Consolidated budget revenues amounted to UAH 184.0 billion in October-December, 2015, which is more by 50.0%, as compared with the fourth quarter of 2014. This outcome is mainly due to the devaluation, inflation, increased taxes (payments for subsoil use, excise tax, VAT) and temporary receipts (additional import fee and incomes of NBU).
Consolidated budget expenditures for the period under review accelerated and totaled to UAH 246.6 billion, which is more by 55.0%, as compared with the fourth quarter of 2014. Noteworthy, the social sphere was the leading component in terms of expenditures growth throughout the period, primarily, due to advance pension payments for January. Traditionally, the rate of expenditures increased by the end of the year.
By the end of the year consolidated budget surplus transformed into deficit. Eventually, in the fourth quarter of 2015 expenditures exceeded revenues by UAH 63.4 billion. The resulting rate of the consolidated budget deficit reached UAH 30.9 billion, or 1.6% of GDP. This mark is twice as less as the corresponding rate in 2014 and twice as less as the deficit limit of 4.2% of GDP set by the IMF for 2015.
More details on the implementation of the consolidated budget of Ukraine in the IV quater of 2015 are included in our traditional report “Budget Chronicle: Q4 2015″.