The Ukrainian government has proposed that the deficit of the national budget for 2012 will be increased by UAH 7.687 billion, to UAH 38.807 billion, to pay the debt for paying the difference in heat tariffs for households.

According to amendments to the law on the national budget for 2012 (draft law No. 11396), which parliament included in the agenda on Tuesday, it is proposed that the extra deficit will be financed using domestic borrowing, the total sum of which will grow to UAH 69.63 billion.

The government said that UAH 7.68 billion is needed to pay the debt for the difference in the heat tariffs for households for 2011-2012, as funds allocated for the purpose in the national budget 2012 are insufficient.

"Today the only way to pay the debt… is financing the relevant subvention using funds of the general fund of the national budget," reads an explanatory note to the draft.

According to the draft law, national budget expenses will be increased to UAH 413.605 billion, including to UAH 360.501 billion for the general fund.

The cabinet also said that the bill was drawn up by the Energy and Coal Industry Ministry, to implement cabinet resolution No. 968 of October 15, 2012 on measures of ensuring payments for consumed imported natural gas.

As reported, referring to the Finance Ministry, the deficit of Ukraine's national budget in September 2012 grew by UAH 7.73 billion or 46.4%, to UAH 24.38 billion.

Over the first nine months of 2012, the revenues of the national budget were UAH 246.32 billion, and those of the general fund were UAH 208.55 billion, which is 8.7% and 10% up from 2011 respectively.

In September the revenues of the national budget came to UAH 25.61 billion, while those of the general fund were UAH 20.1 billion, which is 3.3% and 0.5% up on 2011 respectively.

At the same time, in September expenses of the national budget grew by 20.1%, to UAH 33.08 billion, and those of the general fund by 15.6%, to UAH 28.01 billion.

The expenses of the national budget grew by 15.2%, to UAH 267.26 billion, and those of the general fund were up by 15.1%, to UAH 231.18 billion.

The 2012 national budget, taking into account amendments made this year, in revenues grew to UAH 373.92 billion, and the general fund to UAH 322.19 billion, which is 18.9% and 21.2% up from 2011.

The expenses of the 2012 national budget increased through various amendments are UAH 405.89 billion, those of the general fund are UAH 352.79 billion, which is 21.7% and 22.8% up from 2011.