Ukraine budget revenue rises 14% in 7M19, below plan

Ukraine’s 7M19 state budget revenue rose 13.9% yoy to
UAH 584 bln, which is 3.6% below plan, the State Treasury provisionally
reported on Aug. 2.  Net tax revenue rose 17.1% yoy to UAH 253 bln (2.5%
above plan). Customs revenue climbed 0.9% yoy to UAH 181 bln (9.6% below plan).

Local budgets fiscal revenue improved 18.4% yoy to UAH
157 bln in 7M19, which is 1.1% above plan. Social payments (pension and other
social fund contributions paid by employers) advanced 21.9% yoy to UAH 155 bln.

In July alone, Ukraine’s state budget revenue rose
19.9% yoy to UAH 77 bln, which is 8.1% yoy above plan. Net tax receipts
advanced 20.2% yoy to UAH 66 bln, which is 10.2% above plan. In particular,
general tax revenue surged 29.8% yoy to UAH 47 bln, while VAT reimbursement
declined 3.0% yoy to UAH 10 bln. Customs revenue slid 0.5% yoy to UAH 29 bln,
which is 3.0% below plan.

Evgeniya Akhtyrko: The major development in July’s budget revenue collections is the
decline in VAT reimbursement, which is likely to be the result of slower export
growth. Better net tax revenue should compensate the underperformance in
customs collections, which have shown no signs of improvement amid moderate
import growth and appreciation of the national currency.