Page 34 - UKRRptOct18

Net tax revenue jumped 17.3% y/y to UAH261bn (1.2% above plan), while customs revenue rose 11.1% y/y to UAH210bn (1.9% below plan). Other budget revenue surged three times y/y to UAH79.1bn (15.2% below plan).
In August alone, net tax revenue increased 8.8% y/y to UAH45.1bn, which is 1.6% above plan. Customs revenue picked up 17.8% y/y to UAH30.4bn, which is 3.3% above plan. Other budget revenue in August surged 46.0% y/y to UAH9.2bn but was 33.5% below plan. August state budget revenue was 2.9% below plan.
Local budgets’ revenue increased 15.6% y/y to UAH153bn, outperforming plan by 1.6%. Social payments (personal income tax and pension fund contributions paid by employers) jumped 27.3% y/y to UAH145bn.
Evgeniya Akhtyrko at Kyiv-based brokerage Concorde Capital believes that the improved collection of customs revenue in August was offset by slower growth of tax collection. "Even a significant jump in 'other revenue' could not bring budget revenue to projected monthly collections<" she wrote in a note on September 4.
Ukraine’s budget deficit over the first seven months of this year was estimated at UAH13.4bn , while the government saw UAH27bn in surplus in the same period last year, the State Treasury Service said on September 4.
The budget's general fund in the seven months of this year saw UAH16bn in deficit, whereas the deficit of the budget's general fund in the same period last year was UAH3.1bn.
The State Treasury says borrowings of the general fund in the seven months of 2018 amounted to UAH94bn of the planned UAH150bn, while repayments stood at UAH121bn with planned targets of UAH122bn.
Privatization receipts in January-July this year totalled UAH49.9mn while the plan was set at UAH4.6bn, according to the State Treasury.
Corporate profit tax payments to the budget amounted to UAH54bn with the target fixed at UAH43.2bn.
As was reported, the revenue of the 2018 national budget is planned at UAH917.9bn, while spending at UAH991.7bn, the deficit is capped at UAH80.6bn, or 2.4% of GDP.
In the first half of 2018, revenue totalled UAH449.01bn, spending was UAH458.97bn.
Ukraine to spend about $7.1 bln on defense and security in 2019.
Financing of security and defense at a level of at least 5% of GDP remains a government priority.
6.2 Budget dynamics - funding & privatization
Ukraine is going to place eurobonds for the amount of UAH102.9bn ($3.5bn) on the international capital market in 2019 , according to a draft bill of the nation's state budget for 2019 filed to parliament, the Verkhovna Rada. According to the document, the securities' maturity term would be from five to 15 years, Interfax news agency reported on September 17. In late August, the National Bank of Ukraine (NBU) said that the regulator expects to obtain a new $2bn tranche from the nation's main lender , the International Monetary Fund (IMF), by the end of autumn. The new IMF funding is crucially important for
34 UKRAINE Country Report October 2018 www.intellinews.com