Ukraine budget switches to UAH 32 bln deficit in September

Ukraine’s general
budget switched to a deficit of UAH 32.0 bln in September from a surplus of UAH
52.9 bln in the prior month, the State Treasury reported on Oct. 26. General
budget revenue surged 30% yoy to UAH 130.8 bln after increasing 35% yoy in
August. General budget expenditures increased 13% yoy to UAH 161.6 bln, after
increasing 8% yoy in August.

In 9M21, the general
budget surplus amounted to UAH 2.5 bln (vs. a deficit of UAH 59.0 bln in 9M20).

Tax revenue jumped
29% yoy to UAH 113.5 bln in September, slowing from 37% yoy growth in August.
In particular, enterprise profit tax more than doubled year on year, VAT on
imported goods surged 52% yoy. The revenue from personal income tax increased
12% yoy. Net VAT increased 13% yoy (vs. 4% yoy growth in August) as gross VAT
revenue increased 18% yoy and VAT reimbursement increased 24% yoy.

Non-tax revenue
surged 44% yoy to UAH 16.9 bln in September (after increasing 20% yoy in
August). In particular, the revenue of budget-financed entities increased 48%
yoy; administrative payments advanced 40% yoy.

Evgeniya Akhtyrko: This
was a significant drop to a deficit of UAH 32 bln September from a surplus of
UAH 53 bln in the prior month. It is likely that the government significantly
increased its expenditures for construction and infrastructure programs. We expect to see a significant increase of budget expenditures and
deficit in 4Q21.