Ukraine 8M18 state budget revenue rises 15% yoy, below plan

Ukraine’s 8M18 state budget revenue rose 15.1% yoy to
UAH 528 bln, which is 3.0% below plan, the State Treasury provisionally
reported on Sept 3. Net tax revenue jumped 17.3% yoy to UAH 261 bln (1.2% above
plan), while customs revenue rose 11.1% yoy to UAH 210 bln (1.9% below plan).
Other budget revenue surged three times yoy to UAH 79.1 bln (15.2% below plan).
In particular, revenue from the National Bank of Ukraine (NBU) advanced 48.7%
yoy to UAH bln (11.7% below plan).

In August alone, net tax revenue increased 8.8% yoy to
UAH 45.1 bln, which is 1.6% above plan. Customs revenue picked up 17.8% yoy to
UAH 30.4 bln, which is 3.3% above plan. Other budget revenue in August surged
46.0% yoy to 9.2 bln but was 33.5% below plan. August state budget revenue was
2.9% below plan.

Local budgets’ 8M18 revenue increased 15.6% yoy to UAH
153 bln, outperforming plan by 1.6%. Social payments (personal income tax and
pension fund contributions paid by employers) jumped 27.3% yoy to UAH 145 bln.

Evgeniya Akhtyrko: The
improved collection of customs revenue in August was offset by slower growth of
tax collection. Even a significant jump in “other revenue” could not bring
budget revenue to projected monthly collections.

Importantly, the NBU payments to the state budget
in 8M18 (UAH 44.6 bln) reached the limit that was settled by the NBU board for
full-year 2018. This means that we are not likely to see any more budget
collections from this source through the year end despite fiscal bodies having
planned for more.