Budget Chronicles: 4th quarter, 2014

Neither public revenue targets, nor public expenditure targets were reached in 2014. However, the Ukrainian government did not learn its lesson, and the budget for 2015 is not realistic either.

The consolidated budget’s revenues for the 4th quarter of 2014 totaled 122.7 billion UAH, which is 5.0% more than for the 4th quarter of 2013, due to devaluation, inflation, and, to a lesser extent, new taxes and increased rates.

The consolidated budget’s expenditures for the 4th quarter of 2014 were 158.9 billion UAH, which is 8.3% more than they were in the 4th quarter of 2013. Debt service, defense, law enforcement, and municipal services expenditures were increased and the rest of the expenditures were decreased.

Budget cuts and sizeable quasi-fiscal expenditures helped to keep the consolidated budget’s deficit-to-GDP ratio at 4.7%, which is below the IMF-agreed target.

For more details about the implementation of the budget in the fourth quarter of 2014, read our traditional report “Budget Chronicles: 4th Quarter, 2014” (Ukr.).