The state budget performance in June 2020: 105% execution of the tax plan and 100% execution of the customs' plan

According to the preliminary data of the State Treasury Service, in June 2020 the general fund of the state budget received UAH 112.9 bn, the plan was executed by 105.4%. At the same time, the VAT refund amounted to UAH 11.6 bn. 

In June, for the second month in a row, there is a continuing growth of one of the key indicators that characterize the efficiency of the VAT collection to the general fund of the state budget that is the relative share of collected tax in the business volume according to tax statements of the enterprises. Thus, according to the State Tax Service, in April 2020 this indicator was 2.65%, in May it increased to 3.14%, and in June - to 3.47%. For comparison, in 2019 it was 2.66%, 2.53% and 2.52%, respectively.

The revenues under the State Tax Service amounted to UAH 89.1 bn, including UAH 62.4 bn in the form of dividends and part of net profit paid to the budget by public sector enterprises. In general, the tax plan performance in June was 107.7%, which is UAH 6.4 bn more than the monthly plan.

The overperformance was due to the following revenues:

- VAT (+ UAH 5.0 bn), enhanced by effective measures taken to prevent tax refund abuse,
- excise tax on products produced in Ukraine (+ UAH 0.6 bn),
- personal income tax and military tax (+ UAH 0.5 bn),
- fee for the use of mineral resources (+ UAH 0.3 bn).

The customs revenues of the general fund of the state budget amounted to UAH 21.7 bn or 100% of the monthly plan.

In January-June 2020 the monthly plans of the general fund's revenues of the state budget were executed by 92.1 %, while in January-May of the current year by 88.4 %.

In January-June 2020, social expenditures, security and defense expenditures, debt service and subsidies to local budgets were fully financed in accordance with the plan on the basis of payment orders. Thus, the general fund's expenditures of the state budget for January-June 2020 amounted to UAH 479.6 bn, or 90.4 % of the plan for the reporting period.

Following the 6 months of the current year, the state budget was executed with a deficit of UAH 16.7 bn, including the deficit of a general fund of UAH 27.9 bn, while the plan for the deficit of general fund for the reporting period was of UAH 42.1 bn.

Actual government borrowings to the general fund of the state budget in January-June 2020 amounted to UAH 259.5 bn, or 99.9 % of those planned for this period.

A total of UAH 153.6 bn (99.9 % of the plan) was attracted from the placement of domestic government bonds to finance the state budget, including the equivalent of UAH 61.7 bn of domestic government bonds in foreign currency (USD 1.6 bn та EUR 0.3 bn). UAH 105.8 bn (100% of the plan) was attracted from external sources, in particular:

UAH 33.9 bn through placing 10-year Eurobonds in the amount of EUR 1.25 bn at 4.375 % per annum;
UAH 1.350 bn (USD 50.0 million) of the receipt of IBRD loan funds within the project “Modernization of the Social Support System for the population of Ukraine”;
UAH 55.2 bn (SDR 1.5 bn) of receiving an IMF loan under the Stand-by-2020 Program;
UAH 15.0 bn (EUR 500 million) of proceeds under the EU macro-financial assistance programme.
At the same time, principal state debt payments in January-June 2020 amounted to UAH 156.2 bn (99.7 % of the plan), while state debt interest payments were UAH 61.4 bn (89.7 % of the plan).