You're reading: Forecast for deficit of Ukraine’s state budget in 2014 increased by 29 percent – Finance Ministry

The actual deficit of the national budget of Ukraine in 2014 is expected to total Hr 88.375 billion, which is 28.9% more than the ceiling figure stipulated in the law on the national budget for the current year (Hr 68.564 billion), according to the website of the Finance Ministry. 

According to the report, the forecast for the budget deficit was increased as a result of operations conducted under Articles 16 and 24 of the national budget, which automatically permit to exceed the target for funding.

“The deficit of the national budget in January-October 2014 amounted to Hr 53.777 billion, which corresponds to 60.9% of the annual target with changes… The annual target with changes is UAH 88.375 billion,” reads a statement.

The Finance Ministry noted that Article 16 of the law on the national budget foresaw the issue of government domestic loan bonds and the use of these funds for subventions from the national budget to local budgets to compensate for the difference in tariffs, and Article 24 – the issue of VAT bonds.

According to the ministry, the budget deficit in October amounted to Hr 13.672 billion.

The report also states that the consolidated budget (national and local) in January-October 2014 saw a deficit of Hr 46.158 billion, while during the same period last year – Hr 37.094 billion.

According to the authority, the national budget in January-October 2014 received Hr 59.9 million from the privatization of state property.