Ukraine budget revenue rises 14% yoy in 4M21

Ukraine’s state budget revenue provisionally rose
13.5% yoy to UAH 357.3 bln in 4M21, outperforming the plan by 3.2%, the State Treasury
reported on May 5. Net tax revenue increased 20.1% yoy to UAH 165.2 bln (6.9%
above the plan) amid 13.9% yoy growth in gross tax revenue and a 2.9% yoy
decline in VAT reimbursement. Customs revenue jumped 34.1% yoy to UAH 113.8 bln
(4.8% above the plan).

Local budgets’ fiscal revenue improved 18.4% yoy to
UAH 105.3 bln in 4M21, which is 0.3% below the plan. Social payments (pensions
and other social fund contributions paid by employers) advanced 15.7% yoy to
UAH 106.5 bln.

In April alone, the state budget revenue inched up
1.9% yoy to UAH 105.8 bln, which is 1.3% below the plan. Net tax revenue
advanced 36.8% yoy to UAH 36.5 bln (9.4% above the plan) amid a 26.5% yoy
growth in gross tax revenue and a 3.6% yoy increase in VAT reimbursement. Customs
revenue surged 55.3% yoy to UAH 30.4 bln (7.8% above the plan). At the same
time, the revenue from the National Bank of Ukraine (NBU) declined 42.8% yoy to
UAH 24.4 bln (26.0% below the plan).

Evgeniya Akhtyrko: The much
lower than expected NBU annual payment
to the state budget did not have a significant adverse effect on budget revenue
in April, as tax and customs revenue are booming and outperforming the plan.
The performance of local budgets improved in April.

Budget revenue is likely to grow quickly in
upcoming months. The low comparative base of the previous year will be an
additional factor.