Ukraine budget revenue rises 17% yoy in 2M21

Ukraine’s state
budget revenue provisionally rose 16.9% yoy to UAH 143.5 bln in 2M21,
outperforming the plan by 4.2%, the State Treasury reported March 1. Net tax
revenue increased 19.4% yoy to UAH 71.0 bln (6.9% above plan) amid 9.3% yoy
growth in gross tax revenue and an 11.6% yoy decline in VAT reimbursement.
Customs revenue jumped 20.5% yoy to UAH 49.0 bln (0.5% above plan).

Local budgets’
fiscal revenue improved 5.6% yoy to UAH 50.1 bln in 2M21, which is 0.3% below
the plan. Social payments (pensions and other social fund contributions paid by
employers) advanced 9.3% yoy to UAH 49.7 bln.

In February alone,
the state budget revenue increased 7.6% yoy to UAH 77.3 bln, which is 2.0%
above the plan. Net tax revenue inched up 1.7% yoy to UAH 37.7 bln (3.2% above
plan) amid 4.8% yoy growth in gross tax revenue and 15.5% yoy increase in VAT
reimbursement. Customs revenue jumped 19.3% yoy to UAH 22.1 bln (0.4% above
plan).

Evgeniya Akhtyrko: The
growth of net tax revenue in February slowed down significantly amid increasing
VAT reimbursement to exporters. The growth of customs revenue is still
impressive. Meanwhile, the performance of local budgets doesn’t keep up with
the State Treasury’s plan, and this might provide a more realistic picture of
Ukraine’s public finances as local authorities usually have less resources to
find “compensators” for underperforming tax payers.