Ukraine budget revenue drop 10% yoy in April

Ukraine’s general
budget revenue dropped 9.8% yoy to UAH 123.1 bln in April after increasing 2.6%
yoy in March. General budget expenditures increased 6.0% yoy to UAH 116.7 bln
after growing 3.0% yoy in the prior month. The budget balance switched to a UAH
6.7 bln surplus from a UAH 14.8 bln deficit in March.

In 4M20, the general
budget reached a UAH 10.7 bln surplus  (vs. a surplus of UAH 17.6
bln in 4M19).

Tax revenue
plummeted 13.7% yoy to UAH 69.9 bln in April, after 5.8% yoy growth in March.
In particular, net VAT revenue declined 11.3% yoy after swelling 20.3% yoy in
March. Gross
VAT revenue declined 3.9% yoy while VAT reimbursement increased 1.6% yoy.

In addition, VAT
revenue drop on
imported goods accelerated to 20.6% yoy (from a 8.5% yoy decline in March).
Resource royalty payments plummeted 46.1% yoy (accelerating from a 15.1% yoy
drop in March).  Personal income tax revenue dropped 4.6% yoy after a
15.6% yoy rise in March. Meanwhile, enterprise profit tax revenue increased
13.0% yoy (vs. 12.2% yoy growth in March).

Non-tax revenue dropped
4.4% yoy to UAH 52.9 bln (after declining 24.1% yoy in March). In particular,
income from ownership and entrepreneurship plunged 10.3% yoy.

Evgeniya Akhtyrko: The severe quarantine/lockdown
measures that were in place for the whole month of April resulted in
significant cooling of business activity and, consequently, budget collections.

Meanwhile, budget
expenditures intensified as the government faced needs related to the
coronavirus outbreak. The switch of the monthly general budget balance to surplus
is typical in April, and this is just a temporary thing.

We are likely to see a similar budget revenue drop in May as the
quarantine restrictions were in place for the most of the month. Budget
expenditures will intensify as much as is allowed by the
amended budget.