State budget deficit in 2023 projected at 20% of GDP

“When developing the draft Law ‘On the State Budget of Ukraine for 2023’, a moderately conservative scenario of the macroeconomic forecast was used to calculate the budget indicators, which involves careful assessments of the pace of economic recovery in 2023," Melnychuk said in a Telegram post.

According to the draft law, real GDP is expected to grow by 4.6% in 2023; the total indicators of state budget revenues for 2023 are projected at UAH 1,260.1 billion, which is UAH 282.1 billion lower compared to the approved indicators of 2022 (with amendments), and by UAH 24.2 billion compared to the actual indicators of 2021.

In addition, Melnychuk noted that the share of redistribution of gross domestic product through the state budget in 2023 is expected to decrease by 9% compared to the approved indicators of 2022 (with amendments) and by 3.8% compared to the actual indicators of 2021.

He also published projected indicators for 2023 based on the main budget-forming sources.

According to Melnychuk, the deficit of the state budget in 2023 is projected at 20% of GDP, including the general fund - 17.3% of GDP and the special fund - 2.7% of GDP.

It is noted that financing of the general fund of the 2023 state budget is planned at the expense of state borrowings in the amount of UAH 1,516,873.9 million, including external borrowings - UAH 1,426,149 million, domestic borrowing - UAH 90,724.9 million.

The amount of payments for the repayment of the 2023 state debt is projected at UAH 414,994.5 million, including the repayment of the state external debt – UAH 98,948.2 million, the state domestic debt – UAH 316,046.3 million, and the amount of payments for servicing the state debt for 2023 is projected at UAH 326,283.5 million, including the state domestic debt – UAH 263,905.5 million and the state external debt – UAH 62,378 million, Melnychuk wrote.