State budget for January-September 2018: the performance is close to 99%

In the first three quarters of 2018, the revenues of the state budget of Ukraine increased by UAH 88.9 billion compared to the same period of 2017 (by 15.2%) and are now equal to UAH 674.7 billion.

This increase is mainly based on increased VAT revenues from imported goods (+ UAH 31.8 billion), corporate profit tax revenues (+ UAH 26.2 billion) as well as revenues from the VAT on manufactured goods taking into account VAT refund from the state budget (+ UAH 12.8 billion), revenues from the personal income tax (+ UAH 12 billion) and revenues from the excise tax (+ UAH 5.4 billion).

Budget performance in January-September 2018 was equal to 98.9%

Missing revenues (UAH 7.7 billion) mostly refer to lower dividends on shares (UAH 9.8 billion), excise tax revenues (UAH 6.6 billion), transfers from the National Bank (UAH 5.9 billion), revenues from the sale of seized goods (UAH 4.2 billion), VAT on imported goods (UAH 4 billion), rent fee for the use of subsoil resources (UAH 3.7 billion) and import duties (UAH 1.3 billion). At the same time, the budget’s own revenues increased by UAH 12.8 billion, corporate tax revenues – by UAH 12.7 billion, VAT on manufactured goods taking into account VAT refund from the state budget – by UAH 1.3 billion, private income tax – by UAH 0.9 billion.

The revenues of the general fund of the state budget in January-September 2018 were equal to UAH 609.1 billion, which is UAH 97.6 billion (19.1%) higher compare to last year.

The biggest contributors tо the general fund of the state budget in January-September 2018 were the VAT on manufactured goods taking into account VAT refund from the state budget (UAH 59.9 billion, which is UAH 12.8 billion (27.1%) more compared to the same period of 2017), VAT on imported goods (UAH 208.6 billion, which is UAH 31.8 billion (18%) more compared to the same period of 2017), corporate profit tax revenues (UAH 74.4 billion, which is UAH 26.1 billion (54.1%) more compared to the same period of 2017), and personal income tax revenues (UAH 65.6 billion, which is UAH 12 billion (22.3%) more compared to the same period of 2017).

At the same time, excise tax revenues went down by UAH 8.1 billion (11.8%) due to higher transfers to the special fund of revenues from the tax on oil products and vehicles. Revenues from the rent fee for the use of subsoil resources and revenues from import duties went down as well (by UAH 9.1 billion (25%) and UAH 0.7 billion (4.7%) respectively).

The VAT refund increased by UAH 10.1 billion (11.5%) and amounted UAH 97.6 billion.

The most important public tasks were financed in full.

The expenses of the state budget in January-September 2018 amounted UAH 680.6 billion and thus increased – expenses to serve the public debt not included – by 23.1% (by UAH 111.5 billion). At the same time, the expenses to serve the public debt reduced by 2.3% (UAH 2 billion) compared to the same period of 2017.

The expenses of the general fund of the state budget for salaries (gross) increased by UAH 28.2 billion (30.8%) compared to the same period of 2017 and amounted UAH 119.7 billion, social welfare spending increased by UAH 26.2 billion (28%) and thus amounted UAH 120 billion.

The transfer to the State Pension Fund in January-September 2018 was equal to UAH 108.1 billion. This is 30.4% (UAH 25.2 billion) higher compared to the same period of 2017. This task was financed by 100%.

Local budgets received UAH 255.9 billion from the state budget. This includes social welfare subventions equal to UAH 100.4 billion (UAH 3.7 billion or 3.8% higher compared to the same period of 2017), the education subvention equal to UAH 45.7 billion (UAH 7 billion or 18% higher compared to the same period of 2017) and the healthcare subvention equal to UAH 45.3 billion (UAH 4.6 billion or 11.2% higher compared to the same period of 2017).