Rada to consider 2016 draft budget only after IMF's green light

"Right now we are working on the final version of the budget, which will feature expenditure cuts under the tax reform that we have prepared. The government has no final version [of the budget]. We are at the stage of agreeing it with the IMF. I can submit it only after its approval," the minister said at the government's Q&A session in parliament on Friday.

Jaresko noted that the ministry was seeking to cut budget spending by UAH 60 billion.

"We are in fact trying to reduce our expenses by UAH 60 billion rather than by UAH 15 billion. As you know, our budget consists of several sections. The first section is national defense and human rights organizations. We do not intend to reduce outlays there, and even do not have the right to. The second area is social spending, which is obviously not going to be decreased," the minister said.

She noted that the cuts in budget spending must be synchronized with structural reforms in such areas as healthcare, education, science and other social spheres.

As UNIAN reported earlier, on September 14, Ukraine's Cabinet of Ministers approved a draft state budget of Ukraine for 2016 and submitted it for consideration of the Verkhovna Rada, but later withdrew it for further review.

The Finance Ministry reported that the 2016 budget was based on a deficit set at 3.7% of GDP with 2% GDP growth amid 12% inflation and the forex rate fixed at UAH 24.1 per U.S. dollar.

Consultations are under way regarding the base for the formation of budget revenues and outlays with new tax norms and rules, which are to be adopted by the end of the year.

Ukrainian Prime Minister Arseniy Yatsenyuk claims that the draft budget for 2016 and tax reform should be coordinated with the country's key donor, the International Monetary Fund, and meet the principles and goals of the Ukrainian government's program of reform.