Page 33 - UKRRptMar20

At the same time, net VAT revenue surged 127.4% y/y after 52.8% y/y growth in December. In particular, gross VAT revenue rose 9.5% y/y, while VAT reimbursement dropped 8.7% y/y. In addition, personal income tax revenue grew 15.9% y/y (after a 17.1% y/y rise in December).
Non-tax revenue increased 7.3% y/y, slowing from 11.2% y/y growth in December, owing to a 29.6% y/y rise in income from ownership and entrepreneurship.
6.1.2 ​Budget dynamics - specific issues...
6.1.3​ Budget dynamics - funding
Ukraine’s Regional Development Fund will spend $300mn to support local oblast-level projects in 2020​, Prime Minister Honcharuk said on Telegram. Among approved projects are highways, rural roads, and bridges. Zelenskiy’s team has vowed to build 4,000 km of roads under the Great Road Construction program starting March 1.
This spring, as road building is underway, officials of Ukravtodor, the state highway agency, plan to place up to $800mn in Eurobonds ​to help finance the work. At the forum, the agency’s new head, Oleksandr Kubakov said: “The country has a chance to get normal roads, to upgrade the main network in two to three years. But, this year, we can show a really unprecedented level, an unprecedented amount of construction.”
IMF reports active dialogue with Ukraine, but no timing on deal​ ​The IMF is in “very active dialogue” with Ukraine in reaching agreement on the new EFF loan program that was pre-announced in December, the fund’s spokesman Gerry Rice told a press briefing on February 13. The new program is “subject to approval by our Board and the implementation of a set of prior actions,” Rice reminded the press, providing no details on these actions. Neither did he provide any expectations on the timing of the IMF board decision on the deal. He stressed the key objectives of the new IMF program will be: strengthening the rule of law and tackling corruption, enhancing competition, and reducing the role of the state and oligarchs.
6.1.4​ Budget dynamics - privatization
To trim the Soviet legacy of state companies, the government plans to sell five ‘big’ companies and more than 300 ‘small’ ones​, according to the official Economic Strategy blueprint. A ‘big company is valued over $10mn. Investors could be eligible for a 5-year corporate income tax exemption. The government hopes to earn $500mn through state company sales this year. Last year, small scale privatizations bought in $33mn.
Ukraine plans to put up for sale three small seaports: ​Skadovsk, in Kherson, facing Crimea; and two in western Odessa region -- Bilhorod-Dnistrovskyi, on the Dnistr estuary; and Ust-Dunaisk, on the Danube
33​ UKRAINE Country Report​ March 2020 ​ ​www.intellinews.com