Ukraine 10M18 budget revenue rises 15% yoy, below plan

Ukraine’s 10M18 state budget revenue rose 15.4% yoy to
UAH 765 bln, which is 2.3% below plan, the State Treasury provisionally
reported on Nov. 1. Net tax revenue climbed 16.8% yoy to UAH 313 bln (0.4%
above plan), while customs revenue rose 13.1% yoy to UAH 276 bln (as planned).
Other budget revenue surged almost three times yoy to UAH 83 bln (14.0% below
plan).

In October alone, net tax revenue surged 25.0% yoy
(vs. 4.3% growth in September) to UAH 26.7 bln, which is 2.9% below plan.
Customs revenue increased 23.1% yoy to UAH 35.6 bln, which is 11.9% above plan.
Other budget revenue in October dropped 77.1% yoy to 1.5 .bln, which is 4.8%
above plan. October state budget revenue of UAH 72.6 bln was 1.8% above plan.

Local budgets’ 10M18 revenue increased 16.5% yoy to
UAH 197 bln, outperforming plan by 1.0%. Social payments (personal income tax
and pension fund contributions paid by employers) jumped 26.7% yoy to UAH 184
bln.

Evgeniya Akhtyrko: The current underperformance of state budget revenue is the result of
a discrepancy in budgeting several central bank transfers to the budget. The
2018 state budget assumes these transfers amount to UAH 50.5 bln. Meanwhile,
the National Bank of Ukraine (NBU), as an independent institution, decided that
its transfers will total UAH 44.6 bln for 2018. At the moment, the NBU’s
transfers are paid to the budget in the full amount as provisioned by the NBU,
and no more are expected. To close the gap, the government is likely to make
more efforts to collect tax and customs revenue.