Ukraine budget revenue drops 2% yoy in 4M20

Ukraine’s state budget revenue dropped 2.3% yoy to UAH
315.0 bln in 4M20, which is 11.6% below plan, the State Treasury provisionally
reported on May 2. Net tax revenue rose 9.9% yoy to UAH 137.5 bln (7.8% below
plan) amid 3.6% yoy growth in gross tax revenue and a 10.0% yoy fall in VAT
reimbursement. Customs revenue plummeted 16.0% yoy to UAH 84.8 bln (26.7% below
plan).

Local budgets’ fiscal revenue improved 3.0% yoy to UAH
89.0 bln in 4M20, which is 11.2% below plan. Social payments (pension and other
social fund contributions paid by employers) advanced 8.5% yoy to UAH 92.0 bln.

In April alone, state budget revenue declined 2.4% yoy
to UAH 104.0 bln, which is 11.6% below plan. Net tax revenue declined 6.9% yoy
to UAH 26.7 bln (16.8% above plan) amid a 4.4% yoy drop in gross tax revenue
and a 1.6% yoy increase in VAT reimbursement. Customs revenue declined 22.7%
yoy to UAH 19.6 bln (36.4% below plan).

Evgeniya Akhtyrko: As we expected, budget
collections in April deteriorated significantly as this month fully absorbed
all the negatives of severe quarantine restrictions introduced by the
government in the second half of March.

Budget collections in May are not likely to be any
better than those in April. The alleviation of some quarantine restrictions,
which is planned by the government for May, will not be sufficient to take
business activity out of its current lethargy.