The Cabinet of Ministers has prepared the country's draft state budget for 2012, with a forecast for GDP growth next year at 5.5%, Prime Minister Mykola Azarov said while opening a government meeting on Wednesday.

He said that the deficit of the public administration sector was to be reduced to 2.5% of GDP in 2012, from 3.5% in 2011. "This is a guarantee of our stability," Azarov said. In addition he noted that "even developed European countries cannot hold their deficits within these limits."

The PM named a number of factors determining such strict budget deficit, among which are instability of foreign markets, gas price rise, necessity to reduce state debts.

"This is a budget aimed at supporting domestic producers," he said, while describing the draft document.


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