Page 34 - UKRRptJan22

qualified big investors tax breaks and a government advocate to navigate the bureaucracy, and, ideally, cut red tape.
6.0 Public Sector 6.1 Budget
6.1.1 Budget dynamics - results
Ukraine's state budget revenue provisionally rose 6.8% y/y to UAH140bn in December, underperforming the plan by 11.4%, the State Treasury reported on January 4. Net tax revenue increased 43.0% y/y to UAH50bn (18.9% below the plan) amid 36.3% y/y growth in gross tax revenue and a 20.1% y/y increase in VAT reimbursement. Customs revenue advanced 39.5% y/y to UAH45bn (2.6% below the plan).
In 2021, state budget revenue surged 20.7% y/y to UAH1,299bn, which is 1.8% above the plan. Net tax revenue advanced 21.1% y/y to UAH614bn (3.1% above the plan) amid a 19.0% y/y jump in gross tax revenue and an 11.6% y/y increase in VAT reimbursement. Customs revenue surged 37.8% y/y to UAH409bn (3.2% above the plan).
Local budgets' fiscal revenue improved 20.5% y/y to UAH359bn in 2021, which is 6.6% above the plan. Social payments (pensions and other social fund contributions paid by employers) advanced 18.6% y/y to UAH349bn.
Ukraine’s general budget deficit shrank to UAH6.4bn in November from UAH8.4bn in the prior month, the State Treasury reported on December 24. General budget revenue surged 33% y/y to UAH175.8bn after increasing 22% y/y in October. General budget expenditures climbed 33% y/y to UAH182.1bn, after increasing 1% y/y in November.
In 11M21, the general budget deficit amounted to UAH12.2bn (vs. a deficit of UAH94.7bn in 11M20).
Tax revenue jumped 37% y/y to UAH161.1bn in November, accelerating from 21% y/y growth in November. In particular, enterprise profit tax surged 83% y/y, royalty payments on the use of natural resources increased 56% y/y, and VAT on imported goods jumped 44%. Revenue from personal income tax increased 19% y/y.
At the same time, net VAT increased 2% y/y (vs. 27% y/y in October), as VAT increased 22% y/y, while VAT reimbursement surged 41% y/y. Revenue from excise taxes on domestic goods plummeted 65% y/y (vs. 10% y/y growth in October).
Non-tax revenue inched up 0.3% y/y to UAH14.2bn in November (after surging 37% y/y in October). In particular, the revenue of budget-financed entities declined 17% y/y (vs. 56% y/y growth in October) . At the same time, revenue from ownership and entrepreneurial activity jumped 40% y/y and administrative payments surged 88% y/y.
34 UKRAINE Country Report January 2022 www.intellinews.com