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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Ukrainian Budget Meets IMF Criteria

21 September, 1999 - 00:00

Ukraine's 1999 total budget deficit should not exceed UAH 1.960 billion according to the criteria agreed upon by the government of Ukraine and the International Monetary Fund in the course of implementation of the EFF loan program, Interfax- Ukraine reports.

According to the list of effectiveness criteria and financial highlights for Ukraine's implementation of the EFF program approved in the course of its third revision, the budget deficit should not exceed UAH 1,650 million at the end of August, UAH 1,790 in September, UAH 1,860 million in October, and UAH 1,910 million in November. Moreover, the October and November indices are forecast.

According to the first EFF revision in March 1999, Ukraine's deficit ceiling was set at UAH 1,115 million for the end August, but in fact the budget deficit came to UAH 1,550 million at the time. The law on the 1999 state budget set the deficit at UAH 1,240 million.

The budget deficit growth was caused by the failure to achieve planned budget revenue targets. As a result of the first EFF revision, the budget was to have received at least UAH 8,785 million, while in fact it garnered only UAH 7,998 million. In this connection, this criterion of effectiveness was lowered in the third revision. Budget revenues were to reach UAH 8,040 million at the end of August, UAH 9,360 million by the end of September, UAH 10,690 million in October, and UAH 12,180 million in November. By the end of December, the state budget is supposed to receive UAH 13,930 million. In this case, the September and December indices are the program's criteria of effectiveness (i.e., compulsory).

As a result of the third revision of the program, the upper limit of the arrears on wages, pensions, and other budgetary social payments should be cut from UAH 3,600 million at the end of August to UAH 2,410 million by year's end. In particular, the arrears are to be reduced by UAH 340 million in September, by UAH 270 million in October, by UAH 270 million in November, and by UAH 310 million in December, with the October and November figures being forecasts.

The government managed to reduce its overdue arrears by UAH 739 million since the beginning of this year. As of the end of August, back wages in the public sector were UAH 841 million (almost UAH 7 billion in all sectors), and back pensions constituted about UAH 2 billion.

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