FRUITFUL THURSDAY

On September 20 Verkhovna Rada passed bills at a remarkable pace, among them the amended law on the State Property Fund of Ukraine. Now it is accountable to Verkhovna Rada and to the cabinet in matters relating to public property. The bill setting the monthly living wage at UAH 342.38 in 2002 was passed in the first reading as was that on the specifics of the production, export, and import of compact disks. CD producers will have to use only the kind of equipment and operate on the premises stated in their licenses; each CD will have an ID code, and each manufacturer will store books and records relating to production and sales, along with samples, for a term of at least five years.

In addition, the Solons adopted the sixth book of the civil code called Succession, meaning that five out of the code’s eight books are in effect. Amendments were introduced to the law on the corporate income taxes, extending until January 1, 2006 the clause concerning the transfer of part of the income tax to the special accounts of territorial budgets financing housing construction for servicemen.

Despite such accelerated activity in the legislature, the lobby was like a beehive. Democratic Union leader Oleksandr Volkov described the possibility of his being stripped of the parliamentary immunity, alleged by some media, as the beginning of a dirty election campaign. “The Democratic Union seems in everybody’s way,” he said, “and it’s a shame that Korol (chairman of the committee of inquiry into the Bank Ukrayina bankruptcy — Ed.), a man I respect so much, with a law degree and many years of law enforcement experience, should make such statements misleading the media.”

However, the state budget remains the deputies’ greatest concern.

On September 19 Finance Minister Ihor Mitiukov presented the draft 2002 budget based on the budget code. The cabinet proposed budget revenues of some UAH 43.61 billion, expenditures of UAH 47.89 billion, and a deficit ceiling of UAH 4.28 billion.

He noted that the budget bill takes into account the tasks and priorities, as well as numerical and structural parameters determined by the Guidelines of Budget Policy for 2002. The cabinet claims the draft budget fails to meet only one requirement of the budget resolution: rational tax policy easing the tax burden and stimulating tax functions. Under the bill, fifteen types of tax payments (totaling UAH 2.3 billion) are no longer controlled by the center but by local administrations.

Mr. Mitiukov also stated that when drawing up the budget the cabinet attached special importance to strengthening the social function of the state — specifically, in terms of developing education, health care, and other basic aspects of the social sphere (some 50% of all projected expenditures). Pay in health care and elsewhere in the social sphere is to be increased by an average of 15%. UAH 1.3 billion is to be added to expenses on education and the minimum monthly wage is proposed at UAH 140, starting next year.

The budget committee favors accepting the budget bill for consideration, despite a number of shortcomings, Chairman Oleksandr Turchynov announced, adding that lawmakers will make the necessary corrections “in the course of the budget process.” 70 people’s deputies, it should be noted, had questions for Mitiukov as soon as he presented the budget bill.

“The process must not be overly politicized, but that’s easier said than done,” Valery Konovaliuk (Party of the Regions) told The Day. The party led by Ukraine’s number one tax collector, is taking a special interest in the budget bill. Mr. Konovaliuk denied the possibility of concealed subsidies for political parties and saw the State Treasury as the guarantor. “The coordination of the new budget between the center and the regions should not be associated with the Party of the Regions. This party did not exist when the underlining principles of this coordination were being worked out,” The Day was told by Borys Andresiuk, SDPU(o). Rukh leader Hennady Udovenko offered a diplomatic forecast: “The budget process will be difficult, of course. But the bill will be passed, even if somewhat belatedly,” then adding confidently, “It certainly will, after some hustle and bustle.”