OREANDA-NEWS. September 13, 2012. At its regular session held on September 12, 2012, the Cabinet of Ministers of Ukraine has approved of draft law “On the State Budget of Ukraine for 2013” submitted by the Ministry of Finance of Ukraine.

A briefing had Minister of Finance Yuriy Kolobov informing about basic particulars of the State Budget of Ukraine for 2013.

The first thing the Minister with was that the 2013 budget is realistic and all of its financial figures are optimal and well-balanced.

To this end, 2013 GDP is supposed to be 4.5%, thus enabling to develop budget revenue by economic growth only.

As for public expenditure, the Government is intended to adhere to rationality, priority and efficiency. This is because a well-balanced budget policy influences economy development, thus impacting Ukrainian citizens’ living standards.

Minister of Finance also said that, notwithstanding global financial instability, the Government of Ukraine is confident and consistent in meeting all of its social commitments.

Further still, unlike many other countries, Ukraine’s Government has chosen raising social benefits and tax reduction as tools to promote economic development.

For instance, due to effect of tax benefits and preferences, an extra financial resource of over UAH 70 billion will be gained by business entities in 2013.

Yuriy Kolobov also outlined basic parameters of draft state budget 2013 as follows:

-the budget is based on read GDP of 4.5%, and nominal GDP of UAH 1 trillion 687.8 billion; CPI of 5.9%;

-state budget revenue to increase, in relation to this year target, by 6.4% up to UAH 394.6 billion;

-crediting expenditure to rise 6.3% up to UAH 434.6 billion;

-deficit to be reduced down to 1.6% of GDP (UAH 27.8 billion).

-minimum wage and subsistence rate to be raised for working people by 8.7%;

- young and needy families, people disabled from childhood, and disabled children benefits subvention to be increased by 26.2% up to UAH 39 billion;

-pension support social initiatives of the President of Ukraine are absolutely accounted for (UAH 29 billion).

Concluding his speech, Minister of Finance Yuriy Kolobov said that draft budget next year was a well-balanced document designed to solve social and economic policy matters to promote economy development and increase living standards.