Page 36 - UKRRptJul21

6.0 Public Sector 6.1 Budget
6.1.1 Budget dynamics - results
Ukraine's state budget revenue provisionally rose 12.2% y/y to UAH582.8bn in 1H21, outperforming the plan by 6.5%, the State Treasury reported on July 2.
Net tax revenue increased 7.9% y/y to UAH290.9bn (6.2% above the plan) amid 6.1% y/y growth in gross tax revenue and a 0.2% y/y decline in VAT reimbursement. Customs revenue jumped 39.6% y/y to UAH174.6bn (4.8% above the plan).
Local budgets' fiscal revenue improved 20.8% y/y to UAH163.0bn in 1H21, which is 2.5% above the plan. Social payments (pensions and other social fund contributions paid by employers) advanced 19.5% y/y to UAH165.0bn.
In June alone, state budget revenue declined 18.7% y/y to UAH106.7bn, which is 15.9% above the plan. Net tax revenue dropped 43.0% y/y to UAH50.8bn (6.1% above the plan) amid a 37.6% y/y decline in gross tax revenue and a 3.2% y/y increase in VAT reimbursement. Customs revenue surged 44.6% y/y to UAH31.3bn (9.4% above the plan).
A very high comparative base from June 2020 (when budget revenue surged 64% y/y) resulted in a year-on-year decline in tax collection last month. Recall, the tax administration made an effort in collecting revenues in June to pick up
36 UKRAINE Country Report July 2021 www.intellinews.com