Canceling privileges for enterprises having foreign investment made it possible to preserve citizens’ privileges

On December 20 Ukraine’s parliament approved the bill On the State Budget for 2002, providing for revenues of 45.4 billion hryvnias and expenditures of 49.6 billion. The projected deficit is 4.3 billion hryvnias. The limit for domestic debt was fixed at 12.8 million hryvnias and $3 billion, with a $7.9 billion limit for foreign debt. Of 431 deputies present in the hall 258 voted for the bill, 114 against, and 41 abstained. The Communist Party faction voted against, while the Socialists abstained.

When scrutinizing the draft by paragraph the parliament returned to the First Clause and increased revenues and expenditures by 1.3 billion hryvnias. This was possible due to passage of a law canceling tax privileges for the enterprises with foreign investment and a number of other laws introducing changes into the tax system. This amendment was supported by 261 deputies out of 417 registered with one abstention. The extra revenue made it possible to preserve privileges for a number of categories of the population. The lawmakers also voted to remove Clause 48 of the draft, which included restrictions on granting privileges, in part, for the installation and use of residential telephones, health resort and sanitarium treatment, purchase of automobiles, apartment rent, payment for public utilities, electrical power, and using public transportation.