Vice-PM and Finance Minister Mykola Azarov presents a draft budget-2007 before the parliamentarians of the Verkhovna Rada of Ukraine.

Azarov reports that the increase in transport and energy tariffs, concurrence pressure within domestic and foreign markets weakened the price concurrent advantages of Ukrainian enterprises and negatively influenced the investment activity.

He states that the budget policy in 2007 will be aimed at stabilisation of the economic situation in the country, implementation of the structural reforms and settlement of the social-economic problems, improvement of living standards of the population.

Finance Minister assures that the government is to provide special promotion conditions for domestic producers. According to index, the consolidated budget incomes are UAH 180 milliard, the expenses – UAH 200 milliard and the state budget incomes – UAH 140 milliard. The state budget deficit limits is UAH 15.1 milliard.

According to Azarov, the government plans to allot UAH 26.8 milliard for the reconstruction of innovation-investment model of economic development which will improve the people’s living standards.

Agrarian sector of economy is to get UAH 13 milliard. Azarov stressed that the pension fund supposed to be entailing no deficit and its expenses will make UAH 80 milliard. The baby-birth aid will not be limited and increased by 10.4% comparing with 2006.

According to the budget-2007, the monthly cost of living will make 492 UAH (1$=5.05 UAH by official rate of NBU) from January 1, UAH 501 – from April 1 and UAH 510 – from October 1, 2007. Finance Minister Azarov stressed that the children aid, scholarship, pensions and Chernobyl aid will be scaled up.

The budget is to allot UAH 6.4 milliard for budget workers.


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