State Budget 2007 to focus on transition

10:36, 31 August 2006
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To investment-innovative model of Ukraine`s development

According to the First Vice Prime Minister, Minister for Finance of Ukraine Mykola Azarov, budget 2007 will be focused on the gradual transfer to investment-innovative model of Ukraine’s development, according to the press-office of the Cabinet of Ministers of Ukraine. First Deputy Chief of the Head of the Government noted that while forming the budget the Cabinet of Ministers managed to fit the parameters defined in the Budget Resolution, that is a part of GDP which is redistributed through the budget is forecast to be around 30% and it means that considerable amount (about 36 billion UAH) is left for economics development. It will give practical opportunities to improve economical situation regarding investments and innovations. The Government’s task is to monitor the money inputs just into investment projects realization,” Mykola Azarov emphasized.

      Commenting on main showings of the principal financial document of the country for the following year, First Vice Prime Minister informed that approximately profitable part of consolidated budget 2007 is determined at 170 billion UAH while general fund makes up 110 billion UAH.

      Mykola Azarov stated that approximate deficit number according to the draft of State Budget 2007 is 2,6% of GDP. Concerning the sources to clear state budget deficit, First Vice Prime Minister named internal as well as foreign loans.

      “Privatization revenues of 2007 will not be used to clear state budget deficit next year,” emphasized First Vice prime Minister. According to him, resources received next year from state property sales will be spent on investment projects realization. At the same time Mykola Azarov assured that the Government will report about the fund expenditures.

      First Deputy Chief of the head of the Government also pointed out the problems which appear at the process of forming the next years budget. They are connected to the vast lack of balance between remuneration of labour and provision of pensions. “The Government will gradually address these issues”, stated Mykola Azarov.

      As First Vice Prime Minister noted, State Budget for the following year provides for creation of stabilization fund which will secure economics from the risks connected, for example, with possible increase in gas price. He noted if there would not be any similar situations, this fund’s resources were spent on realization of serious investment projects, first of all concerning technical reequipment and modernization of the national economics.

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