OREANDA-NEWS. December 20, 2010. The Minister of Finance Fedir Yaroshenko presented in Verkhovna Rada a draft law "On State Budget of Ukraine for 2011".

"The primary mission of the Budget 2011 is to create a framework for sustainable development of Ukraine's economy and to ensure successful reform of public finances" – the Minister of Finance emphasized.

Fedir Yaroshenko noted that the draft budget for next year is developed on the new tax base and takes into account the basic directions of budgetary policy for 2011.

The Minister also stressed that the development of the state budget was carried out during the implementation of the " public finance of Ukraine system rebooting", which envisages the creation of effective, safe, harmonious and transparent public finance system through the development or updating of legislation (budget, tax codes) and the formation process maturity of the system on innovative principles.

Budget reform would allow a qualitatively new level to implement project-oriented management, to enable the national and regional development.

All the main managers of budgetary funds in preparing the draft state budget for 2011 aimed at assessing the need for compulsory medium-term economic performance of budgetary programs and projects to be financed from the state budget.

"This strategy will allow to improve next year the efficiency of public spending and to create conditions for economic growth and development of regions" – the Minister of Finance said.

Fedir Yaroshenko noted that the budget-2011 prolongs the policy of raising social standards. Therefore, next year minimum wage and living wage are planned to be increased.

- Living wage: January 1 - 894 UAH, April 1 - 911 UAH, October 1 - 934 UAH, December 1 - 953 UAH.

- Minimum wage: January 1 - 941 UAH, April 1 - 960 UAH, October 1 - 985 UAH, December 1 - 1004 UAH.

- A living wage for persons of disability: January 1 - 750 UAH, April 1 - 764 UAH, October 1 - 784 UAH, December 1 - 800 UAH.

"Once again I want to draw the attention to the fact that reducing the cost of the state apparatus and decreasing transfers to the Pension Fund, we enhance other social expenditures" - Fedir Yaroshenko reported.

Social protection spending increased for 2.7 billion UAH, which will in turn increase the amount of state assistance for childbirth. Assistance amount will gradually be increased during 2011.

Thus, assistance for the 1st child born is:

at the beginning of the year – 17.9 thousand UAH

at the end of the year – 19.1 thousands UAH.

Assistance for the 2nd child born is:

at the beginning of the year – 36.7 thousand UAH.

at the end of the year - 39.2 thousand UAH.

Assistance for the third child will be:

at the beginning of the year – 73.4 thousand UAH.

at the end of the year - 78.3 thousand UAH.

In addition, the allowance for child care next year will be increased. "Next year we expect continued economic growth, further increase in wages and increase of real incomes of citizens" - Fedir Yaroshenko said.

Due to Pension Fund of Ukraine deficit reduction in 2011, the policy of increasing pension benefits will be ensured.

According to Fedir Yaroshenko, reduction of transfers to Pension Fund is solely due to reduction of its deficit. At the same time expenditure on payment of pensions to military, workers engaged in underground work will continue to grow.

The Minister also noted that the state budget for 2011 previews to increase the total resources of local budgets.

He stressed that norms of the new Budget Code of Ukraine were the basis for forming the incomes estimates of local budgets.

"With the introduction of new approaches to budget planning, next year we will achieve increasing the resource base of local budgets, which will create an effective system of local finance, will ensure sustained economic growth of regions and will guarantee the local authorities execution of their social obligations" – the Minister of Finance noted.

The main focus of the in-budget fiscal relations in the coming year will be the socio-economic development of regions. To this end, the investment component of local budgets is increased and state budget expenditures on social and economic development of regions is increased.

According to the Minister of Finance, the Budget Reform provides many additional features to ensure the financial needs of the regions. The next year, financial assistance to local budgets from the State budget is increased.

Key indicators of the bill of the budget for 2011 are as follows:

- revenue - 281.5 billion UAH;

- expenses - 321.9 billion UAH;

- providing loans – 7.5 billion UAH;

- credits refund – 9.2 billion UAH.

To perform tasks set by the President of Ukraine in 2011 budget reduction of the budget deficit and public debt are previewed.

"In general, the draft State budget for 2011 is aimed at creating appropriate conditions for the country's economic growth, supporting regional development and the welfare of the citizens of Ukraine improving" - the Minister of Finance, Fedir Yaroshenko concluded.