Page 33 - UKRRptAug19

6.1.1 Budget dynamics - results
The deficit of the Ukrainian national budget's general fund in January-June 2019 was estimated at UAH6.8bn, or $261mn. Revenue of the national budget grew by 12.9% year-over-year, to UAH506.8bn ($19.5bn), which accounted for 95.7% of the budget targets, according to the Ukrainian Finance Ministry's website.
As of July 1, funds on the single treasury account amounted to UAH13bn ($499mn), while the balance of funds on the currency accounts of Ukraine's State Treasury Service was estimated at UAH81.1bn ($3.1bn) in the equivalent, which is enough for servicing and repaying public debt.
The National Bank of Ukraine (NBU) in January-June transferred UAH64.9bn ($2.3bn) in profit received in 2018 to the budget , the report said.
In the second half of 2019, there are still risks of non-fulfilment of revenue target due to a stronger hryvnia, Ukraine's national currency, and a lower volume of imports, the ministry said. In this regard, the government needs to make every effort to fulfil its obligations, in particular, to implement the reform of the State Fiscal Service by splitting it into two agencies – the customs and the tax service, which will help reduce tax evasion and smuggling and, consequently, boost budget revenue.
Revenue of Ukraine's national budget in June 2019 totalled UAH80.1bn , which is 17.8% less than it was expected and 1% more than in June 2018, according to information on the website of the State Treasury Service of Ukraine. According to the authority, the target of the general fund of the national budget was met by 80.2%, and revenue totalled UAH71.7bn. In January-June 2019, the revenue target of the national budget was met by 95%, with revenues being UAH506.8bn, which is 12.9% more than year ago. Tax revenue in June totalled UAH43.7bn, which is almost 47% more than the target. Customs revenue target was met by 82.3%, reaching UAH23.5bn. Revenue from customs clearance of cars with foreign license plates fell to UAH15.8bn compared with UAH152.8bn in May.
Ukraine’s budget revenue rose 13% in the first half of this year, below plan. Ukraine's 1H19 state budget revenue rose 12.9% y/y to UAH507bn, which is 5.0% below plan, the State Treasury provisionally reported on July 2. Net tax revenue increased 13.6% y/y to UAH216bn (0.4% below plan). Customs revenue increased 1.2% y/y to UAH152bn (10.2% below plan).
Local budgets fiscal revenue improved 17.5% y/y to UAH132bn in 1H19, which is 0.6% above plan. Social payments (pension and other social fund contributions paid by employers) advanced 21.9% y/y to UAH131bn.
In June alone, Ukraine’s state budget revenue rose 1.0% y/y to UAH80bn, which is 17.8% y/y below plan. Net tax receipts surged 70.1% y/y to UAH44bn, which is 46.9% above plan. In particular, general tax revenue climbed 62.2% y/y to UAH57bn, while VAT reimbursement increased 41.1% y/y to UAH14bn. Customs revenue declined 3.9% y/y to UAH23bn, which is 17.7% below plan. At the same time, the budget revenue from “other ministries and sate bodies” plunged 81.5% y/y to UAH3.9bn.
33 UKRAINE Country Report August 2019 www.intellinews.com