Budget Politicization Grows
On November 29, the article-by- article reading of the 2002 budget bill did not go further than the first article, as 176 of 414 lawmakers registered as present voted for the cabinet version of the revenue (UAH 44.2 billion) and expenditure (UAH 48.5 billion) sides. The parliamentary budget committee proposed to set revenues at UAH 52.4 billion and the expenditures at 54.1 billion. Committee Chairman Oleksandr Turchynov noted that the cabinet bill had “a considerable buried reserve: UAH 13.9 billion (one-third of the amount stated in the bill actually submitted —M. Z. ). To correct the government’s omission, the committee proposed to add to revenues privatization proceeds, state social funds (less the Pension Fund), as well as “some other taxes and duties.”
As was to be expected, the cabinet objected and Finance Minister Ihor Mitiukov repeatedly stressed that adding privatization money and planning an increase in tax receipts was a destabilizing factor. The Left has a different view and so do some Center forces. They told The Day that the government had decided to “play its own game.”
After the vote failed, First Vice Speaker Viktor Medvedchuk had to call for additional consultations among the parliamentary groups and fractions to finally determine whether the 2002 budget bill should be put to the vote again or put off for the second reading. People’s Deputy Viktor Suslov told The Day, “No compromise was achieved at a meeting of deputy groups and fractions. Actually, there is a majority in parliament opposed to the budget: Communists, Socialists, Batkivshchyna, Reforms-Congress, Greens, and some in the Party of the Regions.”
According to the minister, “Most of the factions and groups spoke for further cooperation in the course of consultations.” Mr. Mitiukov moved to postpone the second reading of the budget bill to December 6. The proposal received 252 ayes out of 406 members registered.
COMMENTARY
Oleksandr ZINCHENKO, leader of SDPU(o) fraction:
We introduced a number of substantive amendments and were prepared to vote for the budget with our amendments incorporated. In our amendments we envisioned a situation such that budget revenue items begin to increase through GDP growth and higher yields from privatization; also, what is to be done if these rates can’t be adhered to. In other words, we were willing to vote for the bill with amendments to the third clause. To be precise, that as revenues grow, social expenditures should be reallocated. At the repeated second reading, scheduled for December 13, we will put to the vote for the principal clauses, so we can have a vote in the third reading before the New Year. From December 13 to 27, we’ll have to work doggedly to get at least twenty budget items straight between the cabinet and fractions. I can tell you with perfect confidence now that there is too much politics involved in the budget process; groups that said yes only yesterday are now saying no when voting in Verkhovna Rada.
Oleksandr TURCHYNOV , chairman of the budget committee:
The government was shown that it would never get the results it wanted by pressuring and bullying lawmakers. The problems must be solved by constructive work; they must agree to our proposal to add hidden revenues to budget income items, for these revenues could well be used in the election campaign. I think there are some contradictions between the cabinet, president, and pro-presidential factions. The thing is that many of the deputies who support the president will run from districts; they realize that they can’t return to their constituencies with a budget vote that can’t solve a single serious problem.
