Page 41 - UKRRptSept19

6.1.1 Budget dynamics - results
Ukraine budget revenue rises 11% in 8M19, below plan Ukraine's 8M19 state budget revenue rose 10.6% y/y to UAH672bn, which is 4.5% below plan, the State Treasury provisionally reported on September 4. Net tax revenue rose 16.1% y/y to UAH303bn (0.9% above plan). Customs revenue declined 1.7% y/y to UAH206bn (11.0% below plan). Local budgets fiscal revenue improved 18.0% y/y to UAH183bn in 8M19, which is 2.4% above plan. Social payments (pension and other social fund contributions paid by employers) advanced 21.7% y/y to UAH177bn. In August alone, Ukraine’s state budget revenue declined 6.9% y/y to UAH88bn, which is 9.0% y/y below plan. Net tax receipts advanced 11.3% y/y to UAH50bn, which is 6.1% below plan. In particular, general tax revenue rose 11.8% y/y to UAH62bn, while VAT reimbursement climbed 13.6% y/y to UAH11bn. Customs revenue plummeted 17.0% y/y to UAH25bn, which is 19.6% below plan.
Ukraine’s general budget switched to a UAH12.2bn deficit in June from a UAH15.4bn surplus in May, the State Treasury reported on July 25. General budget revenue increased 2.6% y/y to UAH101.9bn, slowing from 8.3% y/y growth in May. Budget expenditures advanced 11.2% y/y to UAH114.2bn, speeding up from 7.6% growth in May.
Tax revenue rose 8.5% y/y in June, slowing from 11.1% y/y growth in May. Net VAT revenue plummeted 17.0% y/y after a 38.6% y/y surge in May. In particular, gross VAT revenue increased 19.9% y/y while VAT reimbursement jumped 41.1% y/y. Personal income tax revenue rose to 17.8% y/y growth (vs. a 19.3% y/y rise in May). Meanwhile, the enterprise profit tax surged 65.9% y/y (vs. a 5.4% y/y decline in May).
Non-tax revenue declined 12.7% y/y in June (vs. a 0.2% y/y drop in May). The decline was mostly due to a 12.5% y/y decline in revenue from income from ownership and entrepreneurial activity (vs. 4.2% growth in May). In 1H19, the general budget surplus amounted to UAH20.4bn.
41 UKRAINE Country Report September 2019 www.intellinews.com