Page 38 - UKRRptJun20

In 4M20, the general budget deficit reached a UAH10.7bn surplus (vs. a surplus of UAH17.6bn in 4M19).
Tax revenue plummeted 13.7% y/y to UAH69.9bn in April, after 5.8% y/y growth in March. In particular, net VAT revenue declined 11.3% y/y after swelling 20.3% y/y in March. Gross VAT revenue declined 3.9% y/y while VAT reimbursement increased 1.6% y/y.
In addition, VAT revenue drop on imported goods accelerated to 20.6% y/y (from a 8.5% y/y decline in March). Resource royalty payments plummeted 46.1% y/y (accelerating from a 15.1% y/y drop in March). Personal income tax revenue dropped 4.6% y/y after a 15.6% y/y rise in March. Meanwhile, enterprise profit tax revenue increased 13.0% y/y (vs. 12.2% y/y growth in March).
Non-tax revenue dropped 4.4% y/y to UAH52.9bn (after declining 24.1% y/y in March). In particular, income from ownership and entrepreneurship plunged 10.3% y/y.
The severe quarantine/lockdown measures that were in place for the whole month of April resulted in significant cooling of business activity and, consequently, budget collections.
Meanwhile, budget expenditures intensified as the government faced needs related to the coronavirus outbreak. The switch of the monthly general budget balance to surplus is typical in April, and this is just a temporary thing.
Budget revenues are likely to drop by a similar amount in May as the quarantine restrictions were in place for the most of the month. Budget expenditures will intensify as much as is allowed by the amended budget.
Ukraine's state budget revenue dropped 2.3% y/y to UAH315.0bn in 4M20​, which is 11.6% below plan, the State Treasury provisionally reported on May 2.
Net tax revenue rose 9.9% y/y to UAH137.5bn (7.8% below plan) amid 3.6% y/y growth in gross tax revenue and a 10.0% y/y fall in VAT reimbursement. Customs revenue plummeted 16.0% y/y to UAH84.8bn (26.7% below plan).
Local budgets' fiscal revenue improved 3.0% y/y to UAH89.0bn in 4M20, which is 11.2% below plan. Social payments (pension and other social fund contributions paid by employers) advanced 8.5% y/y to UAH92.0bn.
In April alone, state budget revenue declined 2.4% y/y to UAH104.0bn, which is 11.6% below plan. Net tax revenue declined 6.9% y/y to UAH26.7bn (16.8% above plan) amid a 4.4% y/y drop in gross tax revenue and a 1.6% y/y increase in VAT reimbursement. Customs revenue declined 22.7% y/y to UAH19.6bn (36.4% below plan).
Ukraine’s budget deficit was UAH23.5bn ($870mn) in January-April 2020​, including the deficit of the general fund of UAH33bn, according to the preliminary estimates of the Finance Ministry on May 6.
The actual borrowing to the general fund of the national budget over the period came to UAH108bn ($4bn) ​or 84.1% of the plan, the ministry said as cited by Interfax Ukraine.
38​ UKRAINE Country Report​ June 2020 ​ ​www.intellinews.com