The Accounting Chamber of Ukraine has published its conclusions regarding the execution of the state budget for the first quarter of 2025. The report emphasizes that the country’s economic stability remains threatened by a number of factors, including a decrease in the number of individual entrepreneurs, fluctuations in the currency market, and inflationary pressure.
This is reported by Business • Media
Execution of the State Budget in the Challenging Conditions of War
The Head of the Accounting Chamber, Olha Pishchanska, stressed that the execution of the budget is complicated by the ongoing war, as the country faces logistics problems, population migration, and infrastructure destruction. This significantly impacts economic indicators.
“The execution of the budget remains complicated due to the war: logistics issues, population migration, and destroyed infrastructure.”
Dynamics of GDP, Exports, and National Debt
In the first quarter, real GDP grew by only 0.5%, while the annual forecast is 2.7%. This dynamic creates risks of underperformance in the budget’s revenue part. The main reasons were an 8.7% decrease in exports, particularly concerning food products and iron ore. At the same time, the share of high value-added products increased to 15.2%.
State expenditures from January to March 2025 reached 1.2 trillion hryvnias, which is 38.5% more compared to the same period last year. The largest share of funds (73.5%) was allocated to defense and security. The national debt increased by 2% and amounts to 7.1 trillion hryvnias. One-sixth of all budget revenues was spent on servicing the debt, although these expenses turned out to be 15% lower than planned indicators.