Ukraine budget revenue rises 19% yoy in 1Q21

Ukraine’s state budget revenue provisionally rose 19.2%
yoy to UAH 251.5 bln in 1Q21, outperforming the plan by 5.7%, the State
Treasury reported on Apr. 1. Net tax revenue increased 16.1% yoy to UAH 128.7
bln (6.2% above the plan) amid 10.6% yoy growth in gross tax revenue and a 4.8%
yoy decline in VAT reimbursement. Customs revenue jumped 27.8% yoy to UAH 83.4
bln (3.7% above the plan).

Local budgets’ fiscal revenue improved 11.5% yoy to
UAH 77.3 bln in 1Q21, which is 1.4% below the plan. Social payments (pensions
and other social fund contributions paid by employers) advanced 10.4% yoy to
UAH 76.6 bln.

In March alone, the state budget revenue increased
22.4% yoy to UAH 108.0 bln, which is 8.0% above the plan. Net tax revenue
advanced 12.3% yoy to UAH 57.7 bln (5.4% above the plan) amid a 12.5% yoy growth
in gross tax revenue and a 13.5% yoy increase in VAT reimbursement. Customs
revenue surged 39.9% yoy to UAH 34.4 bln (8.6% above the plan).

Evgeniya Akhtyrko: Tax revenue picked up significantly in March even amid increasing VAT
reimbursements to exporters. The growth of customs revenue is still impressive.
Meanwhile, the performance of local budgets is not keeping 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 fewer resources to find
“compensators” for underperforming tax payers.