Ukraine - Public finance



Ukraine has displayed positive growth in recent years, but long term growth will require certain market reforms. The economy is burdened by excessive government regulation, and major sectors such as energy and telecommunications remain to be privatized. Corporate governance is weak, and corruption is rampant. Ukraine receives aid from the IMF, although the relationship between those two entities has not always been successful; Ukraine has had problems adhering to IMF monetary conditions.

The US Central Intelligence Agency (CIA) estimates that in 2002 Ukraine's central government took in revenues of approximately $10.2 billion and had expenditures of $11.1 billion. Overall, the government registered a deficit of approximately $900 million. External debt totaled $11.8 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.

Ukraine

REVENUE AND GRANTS 84.3% 8,601
Tax revenue 77.2% 7,872
Non-tax revenue 1.7% 171
Capital revenue 0.6% 63
Grants 4.9% 495
EXPENDITURES 100.0% 11,100
General public services 7.3% 815
Defense 5.8% 649
Public order and safety 6.1% 680
Education 6.2% 687
Health 1.9% 215
Social security 43.2% 4,793
Housing and community amenities 0.5% 57
Recreation, cultural, and religious affairs 0.7% 77
Economic affairs and services 8.2% 906
Other expenditures 13.3% 1,482
Interest payments 6.7% 739

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