Ukraine's unrealistic state budget for 2009 is causing the government to struggle for control over the National Bank of Ukraine (NBU) in order to finance a budget deficit through a monetary emission, Ukrainian President Viktor Yuschenko has said.
"The country has become enthralled by an unprofessional and incompetent budget that can be implemented only by means of control over the NBU, through emission," he said in an interview with the Financial Times.
Twenty billion hryvnias worth of non-reimbursed VAT, UAH 12 billion worth of other taxes collected in advance, as well as the buyout by the NBU of UAH 30 billion worth of sovereign bonds through emission are evidence of the collapse of the budget process this year, Yuschenko said, the presidential press service reported on Friday.
"It's impossible to implement the budget drafted by the government and adopted by the majority in the Verkhovna Rada, which is led by the prime minister. The budget is [failing] completely," Yuschenko said.
He said that the premier had no desire to review the state budget.
He said the recent attacks, and the political and psychological pressure being exerted on the NBU, are linked to the fact that the central bank has adopted a position of principle.
