Ukraine budget revenue rises 0.7% yoy in 7M20

Ukraine’s state budget revenue rose 0.7% yoy to UAH
588.3 bln in 7M20, which is 4.9% below plan, the State Treasury provisionally
reported on Aug. 4. Net tax revenue jumped 18.3% yoy to UAH 299.4 bln (1.3%
above plan) amid 10.5% yoy growth in gross tax revenue and a 10.6% yoy fall in
VAT reimbursement. Customs revenue plummeted 16.7% yoy to UAH 150.7 bln (18.4%
below plan).

Local budgets’ fiscal revenue improved 1.9% yoy to UAH
159.7 bln in 7M20, which is 8.4% below plan. Social payments (pension and other
social fund contributions paid by employers) advanced 5.2% yoy to UAH 162.5
bln.

In July alone, state budget revenue declined 10.8% yoy
to UAH 68.9 bln, which is 8.0% above plan. Net tax revenue fell 19.8% to 29.6
bln (23.1% above plan) amid a 18.2% yoy drop in gross tax revenue and a 12.3%
yoy slide in VAT reimbursement. Customs revenue fell 11.6% yoy to UAH 25.7 bln
(0.4% above plan).

Evgeniya Akhtyrko: July’s drop in budget revenue is significant, but budget collections
now seem to be keeping pace with downward adjusted budget plans. We expect the
declining budget collections to recover in the coming months amid a
post-quarantine recovery of the economy.