Page 33 - UKRRptJuly18

The deficit of Ukraine's national budget reached UAH9.2bn ($350mn) in January-May, while a year ago the budget was in surplus of UAH26.5bn, according to the nation's Finance Ministry.
The deficit of the general fund of the national budget was UAH14.2bn, while last year the deficit of the general fund accounted for UAH6.6bn.
Budget expenditure reached UAH379.9bn in January-May, which is 26.6% more than a year ago. Revenue of the national budget rose by 13.5% year-on-year, to UAH369.7bn, Interfax news agency reported on June 27.
Tax payments grew by 18.3% to UAH298bn in January-May; the profit tax payment increased 77.9% to UAH50.6bn; payments from royalties fell by 41.7% to UAH 13.1 billion.
Non-tax revenue grew by 68%, to UAH68bn, including UAH32bn sent by the National Bank of Ukraine (NBU) and UAH8bn - the fee for the issue of radio frequency spectrum use licenses.
Payments of VAT grew by 18.3% to UAH147.4bn, while VAT refunds rose by 14.4% to UAH54.8bn Revenue of the budget from personal income tax grew by 22.5% to UAH34.1bn.
Ukraine's state budget revenue increased 13.5% year-on-year to UAH369.7bn ($14.1bn), which is 0.6% below plan, the State Treasury provisionally reported on June 1.
Net tax revenue improved 16.2% y/y to UAH164.5bn (0.1% below plan), while customs revenue rose 9.6% y/y to UAH125.6bn (2.8% below plan).
In May, net tax revenue surged 33.8% to UAH43mn, which is 2.7% above plan. Meanwhile, customs revenue picked up 12.5% y/y to UAH26.6bn, which is 4.3% above plan.
"Rising customs revenue amid the continuing surge in tax collection in May boosted the budget’s performance in January-May, bringing actual budget revenue close to plan," Evgeniya Akhtyrko at Kyiv-based brokerage Concorde Capital believes. "At the same time, the strong revenue at this point still doesn’t provide the grounds for a political initiative to hike the minimum wage to UAH4,100 per month from UAH3,723 currently."
6.1.1 Budget dynamics - specific issues...
Ukrainian non-banking financial institutions increased repayments of profit tax to the national and local budgets by 72.2% year-on-year to UAH353.9mn ($13.4mn) in January-March, according to member of the National Commission for State Regulation of Financial Services Markets Oleksandr Zaletov .
"This led to the fact that the aggregate amount of the paid profit tax by non-banking financial institutions, according to the treasury's data, exceeded the similar figure of banks by 8.7%, or by UAH 28.2 million," Zaletov told Interfax news agency.
In January-March, the most dynamic financial services were insurance of civil liability to third parties (a 94.7% increase), financial leasing (76.2%), pension contributions to private pension funds from individuals (34%), life insurance (30.6%), travel insurance (26.8%), contributions to construction financing funds (23.3%), medical insurance (21.7%), auto insurance (20.9%), deposits in credit
33 UKRAINE Country Report July 2018 www.intellinews.com