The planned budget deficit for 2012 at 2.5% is unreal without revision of tariffs for population toward rising, Executive Director of the International Bleyzer Foundation Oleh Ustenko told a press conference.
"Gas prices, envisaged in the new state budget at USD 416/1,000 cu m will hardly leave space in order to make the state budget deficit at 2.5%. Because, deficit of NJSC Naftogaz of Ukraine without rising gas tariffs will be from 1% tо 2% of GDP. I.e., Naftogaz's deficit is about USD 4-5 billion, if tariffs are not changed. USD 6-7 billion should be added to it, envisaged by the state budget deficit, with taking into consideration the Pension Fund deficit. And we get the amount of state budget deficit at 5%," the expert explained, UKRINFORM reported.
Therefore, according to the analyst, the government will have to go by way of cutting expenses, including bringing NJSC Naftogaz of Ukraine to a deficit-free level, related to rising of tariffs.
"Gas prices, envisaged in the new state budget at USD 416/1,000 cu m will hardly leave space in order to make the state budget deficit at 2.5%. Because, deficit of NJSC Naftogaz of Ukraine without rising gas tariffs will be from 1% tо 2% of GDP. I.e., Naftogaz's deficit is about USD 4-5 billion, if tariffs are not changed. USD 6-7 billion should be added to it, envisaged by the state budget deficit, with taking into consideration the Pension Fund deficit. And we get the amount of state budget deficit at 5%," the expert explained, UKRINFORM reported.
Therefore, according to the analyst, the government will have to go by way of cutting expenses, including bringing NJSC Naftogaz of Ukraine to a deficit-free level, related to rising of tariffs.
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