Ukraine budget surplus increases 14% yoy in May

Ukraine’s general budget surplus rose 13.6% yoy to a UAH
15.4 bln in May, the State Treasury reported on May 25. General budget revenue
increased 8.3% yoy to UAH 129.4  bln, slowing from a 37.0% yoy surge in April. Budget
expenditures increased 7.6% yoy to UAH 114.0 bln, slowing from 13.9% yoy growth
in April.

Tax revenue rose 11.1% yoy in May, maintaining nearly
the same rate as in April. Net VAT revenue jumped 38.6% yoy after a 41.5% yoy
fall in April. In particular, gross VAT revenue increased 21.9% yoy while
VAT  reimbursement jumped 15.5% yoy. Personal income tax revenue increased
to 19.3% yoy growth (vs. a 25.5% yoy rise in April). Meanwhile, the enterprise
profit tax declined 5.4% yoy (vs. a 97.4% yoy surge in April).

Non-tax revenue slid 0.2% yoy in May, after twofold
year-on-year growth in April. The decline was mostly due to a high comparative
base.

In 5M19, the general budget surplus amounted to UAH
32.6 bln.

Evgeniya Akhtyrko: 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.