State budget in February; gov\'t raises UAH3bn from local market; puttable FX bonds debut

Economics: State budget execution in Feb.: LTM primary surplus at 0.1% of GDP
The MoF reported yesterday that in the period of January-February 2012, it collected revenues of UAH51.8bn, up 15.9% YoY from the same period in 2011; total expenditures were at UAH46.9bn, having grown at a slower pace than revenues by 15.7% YoY. Debt-servicing expenditures rose by 39.3% YoY, to UAH3.1bn. The budget surplus amounted to UAH4.7bn. On the last 12-month basis, state budget revenues amounted to UAH321.9bn, and were growing at a rate of 26.5% YoY in February, whereas expenditures stood at UAH339.8bn, having risen by 10.2% YoY. Growth rates in February were a bit disappointing, as the growth of revenues slowed by 3.9ppt, while growth in expenditures stepped up by 0.9ppt from January. Primary expenditures\' growth also accelerated, adding 1.0ppt in its year-on-year growth rate, from 7.3% YoY seen in January to 8.3% YoY in February. The silver lining in the state budget statistics for February is that the state budget deficit in the last 12-month period remained quite low, at 1.7% of GDP, albeit adding 0.1ppt if compared to the previous month. The primary balance remained in the black for the second month in a row, and stood in relative terms at 0.1% versus 0.2% of GDP a month earlier.

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