Ukraine budget revenue rises 22% in October

Ukraine’s state budget revenue provisionally rose 22.2%
yoy to UAH 94 bln in October, outperforming the plan by 2.2%, the State
Treasury reported on Nov. 1. Net tax revenue increased 20.1% yoy to UAH 39 bln
(3.3% above the plan) amid 18.7% yoy growth in gross tax revenue and a 14.9%
yoy increase in VAT reimbursement. Customs revenue advanced 23.6% yoy to UAH 37
bln (1.5% above the plan).

In 10M21, state budget revenue surged 21.0% yoy to UAH
1,018 bln, which is 4.5% above the plan. Net tax revenue advanced 16.4% yoy to
UAH 488 bln (5.0% above the plan) amid a 14.4% yoy jump in gross tax revenue
and a 7.3% yoy increase in VAT reimbursement. Customs revenue surged 37.1% yoy
to UAH 322 bln (2.8% above the plan).

Local budgets’ fiscal revenue improved 19.7% yoy to
UAH 287 bln in 10M21, which is 4.9% above the plan. Social payments (pensions
and other social fund contributions paid by employers) advanced 18.7% yoy to
UAH 281 bln.

Evgeniya Akhtyrko: The budget collections remained strong in October. It’s likely that the
outperformance of the budget collections against the plan will fade away by the
end of the year. The recent acceleration of inflation above the level expected during the development of the budget-2021
means that the inflation component will be a significant factor for reaching
planned budget collections in 2021.