Ukraine budget revenue surges 30% in October

Ukraine’s general budget revenue surged 30.5% yoy in October owing to improved collections, substantially accelerating from 6.8% yoy growth in the prior month, the State Treasury reported on Nov. 30. For 10M16, general budget revenue rose 14.1% yoy. Revenues reached UAH 69.7 bln in October compared to UAH 53.4 bln a year ago. Spending was UAH 64.5 bln in October compared to UAH 58.8 bln a year ago. 

The general budget had a UAH 4.8 bln surplus, the central budget had a UAH 3.1 bln surplus, and the local budget a UAH 1.7 bln surplus in October. For 10M16, the general budget was reported at a UAH 26.9 bln deficit, the central budget had a UAH 60.3 bln deficit, and the local budget enjoyed a UAH 33.4 bln surplus.

October budget revenue growth was fueled by the first wire of NBU dividends (UAH 10 bln), excise duties (+49% yoy), VAT collections (+44% yoy), and personal income tax (+32% yoy).

Alexander Paraschiy: Fiscal accounts are in good shape, in line with our expectations. A wire of NBU dividends was responsible for a large part of the revenue surge. Still even without these dividends, revenue grew 11.7% yoy in October, confirming a strong trend that will last through the year end. Quarterly enterprise profit tax deductions in November will only improve the rising tendency. Against this backdrop, we anticipate Finance Ministry will meet its year-end revenue target and secure a general budget deficit within the 3.7% of GDP limit.