Ukraine treasury publishes full March data, corrects media error

The information on Ukraine’s state budget performance disseminated by Ukraine’s mass media on March 30
was incomplete, the State Treasury of Ukraine reported on Apr. 2. In
particular, the final budget figures published for the month of March and 1Q18
did not include the figures for March 31, which were published on Apr. 2.

According to the complete data, Ukraine’s 1Q18 state
budget revenue increased 10.8% yoy to UAH 193.6 bln, which is 3.1% below plan.
VAT reimbursement jumped 25% yoy to  UAH 33.6 bln, while tax revenue rose
only 6.9% yoy to UAH 126.1 bln. As a result, net tax revenue inched up 1.6% yoy
to UAH 92.5 bln, falling 4.6% below plan. Custom revenue rose 12.0% yoy to UAH
74.9 bln.

In March, tax revenue increased 43.1% yoy to UAH 55.4
bln, while net tax revenue grew 57.3%, which is 11.3% above plan. At the same
time, custom revenue dropped 4.8% yoy to UAH 25.2 bln, which is 14.2% below
plan. In March, state budget revenues surged 31.0% yoy to UAH 82.1 bln, which
is 1.0% above plan.

Local 1Q18 budget revenue grew 21.6% yoy to UAH 53.0
bln, fulfilling the plan. Social payments (personal income tax and pension fund
contributions paid by employers) jumped 28.2% yoy to UAH 49.8 bln.

Evgeniya Akhtyrko: The complete data show that March’s budget performed a bit better than
previously reported. Overperformance in tax collection helped surpass the
month’s budget revenue plan amid plummeting custom revenues. Nevertheless, the
first three months of the year point to the inability of Ukraine’s economy to
ensure smooth budget revenue growth. For instance, strong growth in custom
revenue in 2M18 switched to a significant drop in March, while tax revenues
demonstrated an opposite trend.