Ukraine budget revenue rises 16% in 7M21

Ukraine’s state budget revenue provisionally rose
16.3% yoy to UAH 684.5 bln in 7M21, outperforming the plan by 7.0%, the State
Treasury reported on Aug. 2. Net tax revenue increased 10.4% yoy to UAH 330.5
bln (6.0% above the plan) amid 8.6% yoy growth in gross tax revenue and a 2.2%
yoy increase in VAT reimbursement. Customs revenue jumped 37.8% yoy to UAH
207.7 bln (4.1% above the plan).

Local budgets’ fiscal revenue improved 20.8% yoy to
UAH 163.0 bln in 7M21, which is 2.5% above the plan. Social payments (pensions
and other social fund contributions paid by employers) advanced 19.5% yoy to
UAH 165.0 bln.

In July alone, state budget revenue surged 34.0% yoy
to UAH 92.6 bln, which is 6.9% above the plan. Net tax revenue advanced 33.4%
yoy to UAH 39.5 bln (4.2% above the plan) amid a 30.8% yoy jump in gross tax
revenue and a 22.1% yoy increase in VAT reimbursement. Customs revenue surged
29.3% yoy to UAH 33.1 bln (0.5% above the plan).

Evgeniya Akhtyrko: Budget
collections were strong in July. Gross revenue from VAT grows faster than VAT
reimbursement, helping to maintain the high growth rate of tax revenue. The
growth of customs revenue was in line with the government’s expectations, given
the closeness of the result to the plan.

The growth of budget collections is likely to slow
down in upcoming months given the higher comparative base in 2H20.