Government Program: 2004 Version
Last Wednesday the government submitted for Verkhovna Rada’s consideration a draft program for Ukraine’s social and economic development in 2004, titled Consistency. Efficiency. Responsibility. Opening the enlarged session of the Cabinet of Ministers attended by the parliament’s speaker and heads of Verkhovna Rada factions and committees, which discussed the program, Prime Minister of Ukraine Viktor Yanukovych said, “We have every chance to improve our social and economic indices this year.”
In part, implementing the government program for 2004 would make it possible to achieve a 9.5% increase in GDP and 15% in net personal incomes, said First Vice Premier and Minister of Finance Mykola Azarov, when presenting the program to the meeting. In his view, the program is aimed at preserving high rates of export growth (at 10-12%) along with increasing investment component in imports, as well as raising foreign investment by $1.3-1.5 million. Minister Azarov stressed that the program also implies moderate inflation and a stable hryvnia, reports Interfax Ukraine.
In his turn, Minister for Labor and Social Policy Mykhailo Papiyev dwelled on the government’s plans to raise wages and salaries. According to the minister, the cabinet in part sets itself the task of introducing a 237 hryvnia minimum wage beginning September 1, 2004, instead of October 1, as was envisioned in the law On State Budget for 2004. Minister Papiyev stressed that the main indices laid out in the program are 15% growth of net remuneration and increasing official salaries in the budget sphere at least by 25%, along with introducing a single tariff scale. According to the minister, the government also plans to pay off the arrears of functioning enterprises in 2004.
Commenting on the program proposed by the government, National Bank of Ukraine Governor Serhiy Tihipko stated that it is still difficult to access how realistic the cabinet’s forecast is. “I wouldn’t speak about the whole year today, since, whether we wish it or not, we can see that such economic growth depends primarily on exporters and markets, and our economy’s reaction depends on what these markets will be like,” he explained.
Parliament Speaker Volodymyr Lytvyn also expressed some criticism of the Cabinet Program 2004. In his opinion, the draft for the government’s activity contains too few effective tasks and states mostly goals already achieved. In his speech at the cabinet meeting, he stated that it is necessary to strengthen the social component in the program. “We have to forget about our attainments, although we have some,” he said. He also called for introducing order in all branches of government. However, the speaker believes it necessary to support the government’s action plan and give it a chance to work for one more year, “so that it won’t have to look back at those who can summon them, demand their report, and get a vote of no confidence. We have to give the government carte blanche,” Speaker Lytvyn stressed.
Recall that, by approving the government program, the parliament has given it a certain reprieve for a year, during which lawmakers have no right to initiate a process bringing the cabinet down. Viktor Yanukovych’s team received its first carte blanche around a year ago. Soon the government will have to go through a test of its effectiveness.
