You're reading: Cabinet proposes Rada increase 2013 state budget deficit by 30%

The Ukrainian government has proposed that the Verkhovna Rada increase the budget deficit in 2013 by 30% compared with this year's target, to UAH 50.432 billion.

“The draft budget for 2013 envisages a deficit of 3.2% of GDP or UAH 50.4 billion, including that of the general fund at UAH 44.5 billion and that of the special fund at UAH 5.9 billion,” according to the government’s bill on the state budget for 2013, registered in the Verkhovna Rada on December 3 No. 11000) and published on Tuesday.

The revenues of the 2013 state budget will fall by 3% compared to the economic forecast for this year – to UAH 361.51 billion, and expenditures – by 1%, to UAH 410.661 billion.

The maximum amount of state debt at the end of 2013 is expected at UAH 483.032 billion, which is 14% higher than this year’s target.

The government also expects that the revenues of the consolidated budget to total UAH 463.1 billion, which is 0.5% less than the 2012 target. However, the general fund will increase by 0.5%, to UAH 403.2 billion, while the special fund will fall by 6.9%, to UAH 59.9 billion.

The government also pointed out that the draft budget for 2013 is based on a forecast of GDP growth of 3.4% (nominal GDP of UAH 1.576 trillion) and inflation of 4.8%, with a rise in producer prices of 5.5%.