The Cabinet of Ministers supported a bill on correcting the 2006 budget, which will be sent to the Parliament next week. According to Prime Minister Viktor Yanukovych, implementing changes to the budget will allow to significantly correct the budget's shortage, Cabinet press office reported.

According to the bill, drafted by the Finance Ministry, the Govt proposes to increase budgetary revenues in 2006 by 1.6 bn. UAH (320 M. USD), expenditures by 1.8 bn. UAH (360 M. USD). According to the Finance Ministry, exceeding expenditures of the general fund over the revenues by 0.2 bn. UAH won't influence the budget's deficit, as this means will be compensated by higher volumes of paying back credits to the state budget. The bill on changes to the 2006 budget provides for additional 4.1 bn. UAH incomings (800 M. USD) from higher transfers from the State Customs Service and other agencies. The plan of collection of imported VAT is supposed to grow by 600 M. UAH (120 M. USD). At the same time, the Finance Ministry acknowledges that the privatization plan was underfulfilled at least by 1.5 bn. UAH. The State Tax Administration is expected to underfulfill the plan by 2 bn. UAH, too,

The budget's expenditures fund will be reduced by 1.5 bn UAH, which 1.13 bn will be spared in servicing the state debt and credits, given under state guarantees. The Govt also means to reduce 200 M. UAH expenditures for production and purchase of AN-70 planes.

According to the draft amendments, aid to families with children is supposed to be increased by 0.3 bn. UAH, pensions to military servicemen by 0.7 bn. UAH, salaries to local self-government staff by 0.8 bn. UAH, salaries and payments for fuels in executive and judicial power bodies by 0.1 bn. UAH. According to preliminary estimations, corrections to the budget will reach some 2 bn. UAH, referred as technical corrections, which are usually implemented in the end of every year.

Since September 2006 the Govt has numerous times stated that the 2006 national budget's deficit amounts to 10 bn. UAH.


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