Ukraine budget revenue rises 4% yoy in 10M20

Ukraine’s state budget revenue rose 3.9% yoy to UAH 850
bln in 10M20, which is 0.9% below plan, the State Treasury provisionally
reported on Nov. 2. Net tax revenue jumped 16.8% yoy to UAH 419 bln (9.3% above
plan) amid 9.3% yoy growth in gross tax revenue and an 11.2% yoy fall in VAT
reimbursement. Customs revenue dropped 10.8% yoy to UAH 236 bln (12.9% below
plan).

Local budgets’ fiscal revenue improved 4.1% yoy to UAH
240 bln in 10M20, which is 4.0% below plan. Social payments (pension and other
social fund contributions paid by employers) advanced 6.4% yoy to UAH 236 bln.

In October alone, state budget revenue increased 8.5%
yoy to UAH 77 bln, which is 9.8% above plan. Net tax revenue jumped 14.7% to 32
bln (41.9% above plan) amid 6.5% yoy growth in gross tax revenue and a 10.7%
yoy slide in VAT reimbursement. Customs revenue dropped 1.2% yoy to UAH 30.0
bln (4.3% below plan).

Evgeniya Akhtyrko: It looks like we have a chance to see budget revenue reach the 2020
plan. The growth of tax revenue amid the slumping economy is the result of both
better tax collections and reduced tax reimbursements amid weaker exports. The
government also has been fighting pervasive corruption schemes with VAT
reimbursement (the so-called “skrutka”).