Ukraine's government considering budget cuts
The Ukrainian national budget is based on unrealistic figures, therefore the government is considering the possibility of budget cuts, Ukrainian Prime Minister Arseniy Yatseniuk has said at a meeting with the business community in Kyiv.
"According to preliminary estimates, the matter could concern a reduction of the national budget by UAH 65 billion or UAH 80 billion," he said.
Yatseniuk stressed the need to normalize the work of the economy, then probably in the third and fourth quarters budget performance could improve.
The national budget for 2014 was approved with the revenues of UAH 395.3 billion, in particular those of the general fund - UAH 345.46 billion, expenses - UAH 462.21 billion, and those of the general fund of UAH 408.07 billion, as well as a ceiling deficit of UAH 71.56 billion.
In January, budget revenues grew by 9% compared to January last year, to UAH 25.299 billion, in particular those of the general fund - by 12.2%, to UAH 22.505 billion, while the deficit amounted to UAH 1.61 billion.
The January result was achieved through the National Bank of Ukraine's transferring UAH 4.04 billion, while in January 2013 the central bank sent a mere UAH 1 billion to the budget.
Cash expenditures of the national budget in January 2014 increased by 8.4%, to UAH 26.895 billion, in particular those of the general fund – to UAH 25.351 billion.