Ukraine budget revenue rises 23% yoy in 5M21

Ukraine’s state budget revenue provisionally rose
22.6% yoy to UAH 476.1 bln in 5M21, outperforming the plan by 4.7%, the State
Treasury reported on June 1. Net tax revenue increased 32.9% yoy to UAH 240.2
bln (6.3% above the plan) amid 24.1% yoy growth in gross tax revenue and a 0.8%
yoy decline in VAT reimbursement. Customs revenue jumped 38.5% yoy to UAH 143.3
bln (3.8% above the plan).

Local budgets’ fiscal revenue improved 20.4% yoy to UAH
135.5 bln in 5M21, which is 2.5% above the plan. Social payments (pensions and
other social fund contributions paid by employers) advanced 17.5% yoy to UAH
132.8 bln.

In May alone, the state budget revenue surged 61.6%
yoy to UAH 118.6 bln, which is 1.8% above the plan. Net tax revenue advanced
73.7% yoy to UAH 75.0 bln (4.8% above the plan) amid a 59.4% yoy growth in
gross tax revenue and a 7.8% yoy increase in VAT reimbursement. Customs revenue
surged 58.6% yoy to UAH 29.5 bln (0.3% above the plan).

Evgeniya Akhtyrko: The low
comparative base of the previous year was an additional factor of accelerated
growth of budget revenue in May. Nevertheless, budget collections remain
strong, driven by the recovering economy and government efforts in combating
tax evasion.

We expect the growth of the budget will remain
strong in upcoming months.