Ukraine budget deficit shrinks to UAH 8 bln in October

Ukraine’s general budget deficit shrank to UAH 8.4 bln
in October from UAH 32.0 bln in the prior month, the State Treasury reported on
Nov. 25. General budget revenue surged 22% yoy to UAH 129.4 bln after
increasing 30% yoy in September. General budget expenditures inched up 1% yoy
to UAH 138.0 bln, after increasing 13% yoy in September.

In 10M21, the general budget deficit amounted to UAH
5.9 bln (vs. a deficit of UAH 89.4 bln in 10M20).

Tax revenue jumped 21% yoy to UAH 116.4 bln in
October, slowing from 29% yoy growth in September. In particular, enterprise
profit tax more surged 77.6% yoy. Net VAT increased 27% yoy (vs. 13% yoy growth
in September) as gross VAT revenue increased 21% yoy and VAT reimbursement
increased 15% yoy.

VAT on imported goods jumped 26% yoy; revenue from personal
income tax increased 15% yoy.

Non-tax revenue jumped 37% yoy to UAH 12.3 bln in
October (after surging 44% yoy in September). In particular, the revenue from
ownership and entrepreneurial activity surged 89% yoy, the revenue of
budget-financed entities jumped 56% yoy. At the same time, administrative
payments dropped 19% yoy.

Evgeniya Akhtyrko:  The budget deficit was quite moderate in October, mostly due to
restrained government expenditures. The growth of revenue is slowing but it
still looks impressive. We expect to see a significant seasonal increase of
budget expenditures in the last two months of 2021.