News
10.09.2010
Ukraine. Finance Ministry: State budget deficit in 2011 expected at 3% of GDP
The deficit of Ukraine's state budget for 2011 is expected at 3% of GDP (UAH 37.6 billion, UAH 7.91 / USD 1), according to the main principles of the draft state budget for 2011.
Thus, the budget deficit in 2011 compared to 2010 will decline by UAH 16.5 billion.
The budget deficit will be reduced at the expense of limiting the rapid growth of the wage fund in the public sector in the medium term (the wage expected to grow by 8.9% in 2011), conducting pension reform that will help reduce the deficit of the Pension Fund to UAH 17.8 billion, decreasing transfers from the state budget to the Pension Fund by UAH 6.5 billion to UAH 58.3 billion, and approving the deficit-free and subsidy-free financial plan of Ukraine's state oil and gas company Naftogaz.
The Cabinet of Ministers expects Ukraine's gross domestic product to grow by 4.5% in 2011, and compared to 2010 the growth will total 0.8%.
According to the estimates the Finance Ministry, nominal GDP in 2011 will rise by 15.7% to UAH 1.253 trillion. The ministry said that these figures were consistent with the forecast of the International Monetary Fund.
ukrinform
