OREANDA-NEWS. April 10, 2012.  April 5 Government Session has approved of draft Budget Policy Guidelines for 2013.

Respective regulation of the Cabinet of Ministers of Ukraine identifies the next year budget policy key parameters as follows:

- keeping the ceiling of the state budget deficit within the limits of 0.8% to 1%;

- maintaining the GDP restructuring via consolidated budget at the level no lower than the one for 2012;

- maintaining the state debt ceiling at an economically sound level, namely no more than 25% of the GDP, compared to the 2012 level of 27.7%. In order to relieve the debt load in 2013, state property privatization is set to be the primary source of deficiency payments;

provision of the government guarantees of no more than 1% of GDP.

As for the social sphere, the 2013 budget policy will be aimed at further implementation of social initiatives of the President of Ukraine including the raise of living standards, among other means, by increasing social allowance and pensions, minimum salary and cost of living, and raising the official salary (base rate) for the 1st tariff rank employee under Unified Rate Schedule in order to gradually approximate it to the minimum salaries by 2014.

Besides, the next year draft Budget Policy Guidelines also establish government social guarantees subject the adjusted cost of living, and provision for the actual salary growth more rapidly than in 2012, and keeping the state’s obligation to gradually compensate citizens’ loss on the depreciation of money savings.

In 2013, the state regional development fund is about to be established at the amount of 1% forecasted revenue of draft state budget general fund. The fund will cover the implementation of regional development and interregional cooperation strategic projects.

Also, national economy’s priorities are identified such as the modernization of the infrastructure and primary economy sectors and providing the state support for companies implementing innovation projects, growth of agricultural and related production, and up-to-date VAT refund including automated refund.

The 2013 state policy will be generally aimed at further deregulation, lowering fiscal pressure and implementing budget sector reforms.

One should say that respective draft document was considered and agreed upon involving trade unions’ and employers’ officials. The dialogue that was conducted resulted in taking the public’s constructive suggestions into account.