Ukraine budget revenue rises 11% in 8M19, below plan

Ukraine’s 8M19 state budget revenue rose 10.6% yoy to
UAH 672 bln, which is 4.5% below plan, the State Treasury provisionally
reported on Sept. 4. Net tax revenue rose 16.1% yoy to UAH 303 bln (0.9% above
plan). Customs revenue declined 1.7% yoy to UAH 206 bln (11.0% below plan).

Local budgets fiscal revenue improved 18.0% yoy to UAH
183 bln in 8M19, which is 2.4% above plan. Social payments (pension and other
social fund contributions paid by employers) advanced 21.7% yoy to UAH 177 bln.

In August alone, Ukraine’s state budget revenue
declined 6.9% yoy to UAH 88 bln, which is 9.0% yoy below plan. Net tax receipts
advanced 11.3% yoy to UAH 50 bln, which is 6.1% below plan. In particular,
general tax revenue rose 11.8% yoy to UAH 62 bln, while VAT reimbursement
climbed 13.6% yoy to UAH 11 bln. Customs revenue plummeted 17.0% yoy to UAH 25
bln, which is 19.6% below plan.

Evgeniya Akhtyrko: The August budget collections were absolutely unsatisfactory. Net tax
revenue declined amid slowed growth in revenue collection and renewed growth in
VAT reimbursement. Meanwhile, the situation with customs collections went from
bad to worse, in what is likely a backlash to expected reforms of this highly
corrupted government body declared by the Zelensky administration. This was reflected in the drop of customs revenue
from “grey” imports.