The situation in the tax system of Ukraine has improved: incomes of the budget are growing, and expenses - are reduced. This conclusion came in a report by experts of the International Fund private equity Sigma Bleyzer, analyzing the figures for May.

Respectable economic growth, increase profitability of Ukrainian enterprises and the wider tax base consolidated incomes of the budget. Thus, revenues from corporate tax only in January and May this year have improved by 57% compared to same period last year. Thanks to reliable domestic demand, revenues from value added tax and import duties were accordingly by 20,5% and 38.2% more than last year.

Contrary to the growth of budget revenues, budget expenses fell sharply in May. This, according to experts, is due to cuts in social spending. Slight increase in nominal wages and expanding the tax base allowed the Pension Fund to increase their incomes by 22.3% compared to the previous year. It should be noted that social spending and budgetary transfers to the Pension Fund set up in the last year a fairly high base for comparison with the current year. And these two factors (increased revenue of pension fund and higher comparative base) explain the reduction budget expenses for social needs.

Budget revenues may slow in the second half of 2011 due to lower tax rates, tax breaks for small businesses and simplify the tax. At the same time, the budget deficit may, according to experts Sigma Bleyzer, up 2.7% of GDP, instead of the projected 3%.