Page 37 - UKRRptSept20
P. 37
6.1.1 Budget dynamics - results
Ukraine's state budget revenue rose 2.5% y/y to UAH689bn in 8M20,
which is 2.8% below plan, the State Treasury provisionally reported on September 1. Net tax revenue jumped 17.3% y/y to UAH356bn (5.3% above plan) amid 9.7% y/y growth in gross tax revenue and a 12.1% y/y fall in VAT reimbursement. Customs revenue plummeted 13.8% y/y to UAH178bn (15.9% below plan).
Local budgets' fiscal revenue improved 2.9% y/y to UAH188bn in 8M20, which is 5.6% below plan. Social payments (pension and other social fund contributions paid by employers) advanced 4.9% y/y to UAH185bn.
In August alone, state budget revenue increased 14.3% y/y to UAH87.0bn, which is 15.2% above plan. Net tax revenue jumped 12.2% to 53.6bn (33.2% above plan) amid a 5.4% y/y growth in gross tax revenue and a 24.5% y/y slide in VAT reimbursement. Customs revenue advanced 6.5% y/y to UAH26.9bn (1.1% above plan).
It is encouraging that budget collections picked up significantly in August. A jump in net tax collection was mostly due to a significant drop in VAT reimbursement, which is the result of weak exports. At last, customs revenue managed to show year-on-year growth. For the moment, it looks like budget collections will be able to keep up with the downward adjusted budget plans through the end of the year.
Ukraine's state budget revenue rose 0.7% y/y to UAH588.3bn in 7M20, which is 4.9% below plan, the State Treasury provisionally reported on August 4. Net tax revenue jumped 18.3% y/y to UAH299.4bn (1.3% above plan) amid 10.5% y/y growth in gross tax revenue and a 10.6% y/y fall in VAT reimbursement. Customs revenue plummeted 16.7% y/y to UAH150.7bn (18.4% below plan).
Local budgets' fiscal revenue improved 1.9% y/y to UAH159.7bn in 7M20, which is 8.4% below plan. Social payments (pension and other social fund contributions paid by employers) advanced 5.2% y/y to UAH162.5bn.
In July alone, state budget revenue declined 10.8% y/y to UAH68.9bn, which is 8.0% above plan. Net tax revenue fell 19.8% to 29.6bn (23.1% above plan) amid a 18.2% y/y drop in gross tax revenue and a 12.3% y/y slide in VAT reimbursement. Customs revenue fell 11.6% y/y to UAH25.7bn (0.4% above plan).
Due to the corona-recession, state budget revenues are $1.4bn below plan for the first half of this year, Valery Patskan, chairman of the Accounting Chamber, writes on Facebook. About 37% of the drop is due to a fall in customs duties due a 20% drop in imports during the first half.
Ukraine’s general budget fell into a deficit of UAH28.7bn in July from a surplus of UAH28.5bn in June, the State Treasury reported on August 26. Budget revenue declined 8.0% y/y to UAH93.7bn in July after surging 50.5% y/y in June. General budget expenditures jumped 21.9% y/y to UAH120.5bn after growing 7.0% y/y in the prior month.
37 UKRAINE Country Report September 2020 www.intellinews.com
