The Cabinet of Ukraine estimates the return of the state budget bill for 2007 to the Parliament as an act, directed to political destabilization in the State, possible dismissal of the Verkhovna Rada of Ukraine, provoked by illusion, and appointment of the early parliamentary elections.”

As the Government press office reported, according to the Cabinet, the major core of the budget-2007 was “further steps to strengthen social protection of the population, the stimulation of the innovational economy development, intensification of the structure reforms concerning native and foreign investments and decrease of the fiscal economy obligation. The Ukrainian people gained a possibility to spend additional UAH 32 milliard for the social purpose, comparing with funds of the budget-2006.”

Instead of this, “the hope on setting into operation the important for the country law “On State budget for 2007”was not fulfilled. For the first time in the newest history of Ukraine on December 12, 2006 the President of Ukraine returned the law “On State budget for 2007” to the Verkhovna Rada of Ukraine without any consultations with the Government, incited by the political forces which have an objective to destabilize economic and political situation in the State and to provoke the social conflict,” the Government said.

As the Cabinet said: “suggestions of the President of Ukraine to the law “On State budget for 2007” are not based on the real economy calculations and break the requirements of article 95 of the Constitution of Ukraine concerning the budget balance. The price of these populist proposals is more than UAH 10 milliard not provided with revenues of the budget allocations.

The Government, formed by the parliamentary coalition, considers that within the framework of the Constitution of Ukraine such irresponsible policy of expenditure increase without defining the financial sources was already executed in 2005 but it provoked only inflation processes. In such way innovation investment model of economic development is being destroyed, and the system of consumer ideology is stimulated.

The Cabinet of Ukraine said that it will make all efforts to provide stable development of the Ukrainian State and interests of the Ukrainian people within the framework of the Constitution.


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