Ukraine’s revenues down in H1 due to COVID-19

Ukraine’s budget revenue amounted to 450.9 billion hryvnia (16.5 billion US dollars) in the first half of this year, 7.8 per cent, or 38 billion hryvnia, less than planned, authorities said on Wednesday.

The deterioration in the country’s economy is the main reason for the loss of income, Chairman of the Accounting Chamber Valeriy Patskan said on his official Facebook page, Xinhua news agency reported.

Ukraine’s real gross domestic product dropped by 6.7 per cent year on year in 2020, and the industrial output decreased by 8.3 per cent, said Patskan, adding that there was also an outflow of foreign direct investment.

The costs of repayment and servicing of public debt amounted to 220 billion hryvnia, or almost a third of the total state budget expenditure in the first half of this year, he added.

Due to the COVID-19 pandemic and its negative impact on the economy, the Ukrainian Parliament amended the state budget for 2020 in April, cutting budget revenues to 975.8 billion hryvnia and increasing spending to 1.27 trillion hryvnia.