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4 of November, 17:02

Yatsenyuk said he would not allow cuts in social norms
The state budget of Ukraine for 2016 must be balanced, the Government was in favour of reducing the expenditure side of the budget, however, will not allow the reduction focused on social standards, said Thursday Ukrainian Prime Minister Arseniy Yatsenyuk.

The Cabinet of Ministers of Ukraine plans to adopt the state budget for 2016 on the basis of the new tax system. At the moment there are two options of tax reform - governmental and parliamentary. Each of these options involves reduction of the expenditure budget, the Draft of the Ministry of Finance by 60 billion UAH, Deputy - 200 billion. thus, according to the agreements with the IMF during the extended payment program, Kiev is obliged to reduce the State budget for the subsequent year with a deficit not greater than 3, 7% of GDP. First Finance Minister Natalia Yaresko said on the need for discussion on which articles in the state budget will be reduced on funding.

"The government clearly emphasizes that we need to adopt a balanced budget. We advocate the reduction of state budget expenditures, and It must be a shared political responsibility of both the government and the parliamentary coalition, because When carrying out the reduction of budget expenditures I, as Prime Minister, never agree to this reduction was about social standards. Optimization of state budget expenditures and improve the management of funds Is what We are ready to engage the widest possible public discussion, " - said Yatsenyuk at the meeting of the government.

"We must fulfill all criteria and all measures defined reform programme and which correspond to the Ukraine's obligations to international lenders. The draft state budget and tax reform are required to conform to the reform plan, approved by the government, signed by the President and the Prime Minister during our cooperation with the IMF ", - added the Prime Minister.

A severe Crisis of political power affects the economy and the budgetary sphere of Ukraine, in fact the country is on the verge of default. International creditors of Ukraine has worsened its autumn forecasts for GDP growth of the country in 2015. So, the IMF now expects the fall of GDP of Ukraine In the current year by 11% instead of 9%, world Bank - 12% instead of 7, 5%.

in the country increased unemployment, the national currency in one year dropped more than 3 times. In the end, according to the Ministry of Finance of Ukraine, in January 2015 the average salary in the country amounted 3455 hryvnia, or about 160 dollars. This is one of the lowest indicators in the European Union. In the budget for the current year indexation of minimum wages and pensions is scheduled only from December 1.


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