Page 43 - UKRRptJul19

6.1.1 Budget dynamics - results
Ukraine’s general budget surplus rose 13.6% y/y to a UAH15.4bn in May,
the State Treasury reported on May 25. General budget revenue increased 8.3% y/y to UAH129.4bn, slowing from a 37.0% y/y surge in April. Budget expenditures increased 7.6% y/y to UAH114.0bn, slowing from 13.9% y/y growth in April.
Tax revenue rose 11.1% y/y in May, maintaining nearly the same rate as in April. Net VAT revenue jumped 38.6% y/y after a 41.5% y/y fall in April. In particular, gross VAT revenue increased 21.9% y/y while VAT reimbursement jumped 15.5% y/y. Personal income tax revenue increased to 19.3% y/y growth (vs. a 25.5% y/y rise in April). Meanwhile, the enterprise profit tax declined 5.4% y/y (vs. a 97.4% y/y surge in April).
Non-tax revenue slid 0.2% y/y in May, after two-fold year-on-year growth in April. The decline was mostly due to a high comparative base.
In 5M19, the general budget surplus amounted to UAH32.6bn.
“The situation with budget management showed some improvement in May. In particular, the government has managed to maintain moderate expenditures amid not-that-impressive budget collections. However, it’s hard to predict how the fiscal situation will develop through the end of the year, as we have no picture on the policy that will be implemented by the next Cabinet that will be formed after the July 21 parliamentary elections,” Evgeniya Akhtyrko of Concorde Capital said in a note.
43 UKRAINE Country Report July 2019 www.intellinews.com