Page 40 - UKRRptDec19

expenditure full year plan
1,140,149,127,843.9
expenditure YTD
758,748,105,915.3
% expenditure of the plan fulfilment YTD
66.5
deficit/surplus
-400,398,151,112.3
source: MinFin
Ukraine’s general budget deficit contracted to UAH9.4bn in October ​from UAH25.4bn in the prior month due to lower budget expenditures, the State Treasury reported on November 25. Ukraine’s general budget revenue rose 2.0% y/y to UAH97.6bn in October, slowing from 3.7% y/y growth in the prior month. General budget expenditures increased 11.6% y/y to UAH107.0bn.
Tax revenue inched up 0.5% y/y in October, slowing from 5.3% y/y growth in September. In particular, net VAT growth slowed to 10.8% y/y (vs. a 85.1% y/y surge in September), as VAT reimbursement increased 28.7% y/y (vs. a 4.1% y/y decline in September). Royalties for using natural resources dropped 30.1% y/y (vs. a 24.8% y/y fall in September).
Revenue from the excise tax on domestically produced goods declined 6.8% y/y (vs. a 4.1% y/y decline in September). Personal income tax revenue increased 16.3% y/y (vs. a 18.8% y/y jump in September). Receipts from the enterprise profit tax surged 69.8% y/y (vs. a 40.0% drop in September).
Non-tax revenue jumped 11.6% y/y in October (after a 7.6% y/y decline in September). The growth was mostly due to a 23.3% y/y surge in revenue of budget-funded agencies.
In 10M19, the general budget surplus amounted to UAH1.2bn (vs. a UAH15.3bn surplus in 10M18).
The Cabinet submitted to the Rada October 5 a conservative budget for 2020 with a deficit of 2.09% of GDP.​ Previously, this figure was 2.28% in 2019 and 2.4% in 2018. Finance Minister Markarova told reporters: “The deficit of 2% of GDP is the same as we submitted for the first reading. The revenue side increased by 13bn UAH[$520mn], the expenditure side - by 15bn UAH[$600mn].” For new revenue, the draft budget allows for $120mn from legalized gambling and $240mn in from privatizations of state companies and sales of state properties.
Ukraine budget revenue rises 9% in 10M19, below plan​. ​Ukraine's 10M19 state budget revenue rose 8.5% y/y to UAH811bn, which is 5.5% below plan, the State Treasury provisionally reported on November 1. Net tax revenue rose 14.9% y/y to UAH359bn (0.4% below plan). Customs revenue declined 4.6% y/y to UAH263bn (12.1% below plan).
Local budgets fiscal revenue improved 17.2% y/y to UAH230bn in 10M19, which is 1.6% above plan. Social payments (pension and other social fund contributions paid by employers) advanced 20.9% y/y to UAH222bn.
In October alone, Ukraine’s state budget revenue dropped 2.3% y/y to UAH71bn, which is 9.9% y/y below plan. Net tax receipts advanced 5.0% y/y to UAH28bn, which is 8.0% below plan. In particular, general tax revenue rose 11.6% y/y to UAH41bn, while VAT reimbursement surged 28.7% y/y to UAH13bn. Customs revenue declined 14.7% y/y to UAH30bn, which is 16.1% below plan.
40​ UKRAINE Country Report​ December 201 ​ ​www.intellinews.com