OREANDA-NEWS. September 15, 2008. A deficit of the State Budget of Ukraine for 2008 is estimated at the rate of 1.4% of GDP.

Minister of Finance of Ukraine Viktor Pinzenyk announced at a special sitting of the Gov’t. He stressed that the revenues of the State Budget would amount 285 bn UAH while the expenditures – 302.4 bn UAH.

According to Viktor Pinzenyk, the draft budget, in the course of elaboration of which the Finance Ministry of Ukraine took into account an additional resource to the tune of 90.1 bn UAH, has been prepared with keeping in mind priorities of fund distribution. One of the principal priorities, according to the head of financial department, appears the change of minimal wage which is planned to approach to the subsistence wage.

The Minister of Finance of Ukraine emphasized that 30 bn UAH out of the State Budget is envisaged to direct to variable expenses, while to support the Pension Fund 44 bn UAH will be directed from the State Budget (this year’s growth - 25%).

According to Viktor Pinzenyk the draft budget for the following year also envisages money to eliminate disbalance with salaries of enlisted personnel working in various departments and to increase expenses for urgent issues in energy system.

The Finance Minister of Ukraine also added that the draft of Main financial document of the state for the following year has been built to comply with current legislation and doesn’t affect any other norms of laws. In her turn, Prime Minister of Ukraine Yulia Tymoshenko added that it is happening firstly, over all 17 years of independence: “We fulfill in full a decision of the Constitution Court, according to which the law on budget neither envisages any amendments to the other laws nor changes the tax legislation.”

Besides, as Finance Minister put it, the Gov’t in amendments and addenda to the State Budget for 2008 has laid three principal aspects concerning local budgets. Viktor Pinzenyk stressed that for the first time it envisages subvention for social and economic development of small towns to the tune of 1 bn UAH, while a draft bill “On changes to the Budget Code”, which has already been agreed, stipulates funds to the local budgets to the tune of 7.5 bn UAH per year. In addition, according to the head of financial department, the changes envisage transfer of a part of expenses directly to the local budgets.