Ukraine's foreign debt may top 40% of GDP by the end of this year, Ukrainian Deputy Prime Minister Sergiy Tigipko told the Russia 24 TV Channel.
"The foreign debt grew from 12% of GDP to 36% of GDP in two years. The debt will reach 41-42% of GDP by the end of the year," he said.
"The [debt] of 60% is a limit but not for such a country as Ukraine. We must stop at 40%," he said.
The Ukrainian government needs "strict consolidation of public funds," Tigipko said.
Naftogaz Ukrainy is "a key hole in the budget," he said.
It is planned to cut the tax burden on certain industries, Tigipko said. For instance, Ukraine is reducing the tax revenue from 25% to 19%, and the VAT rate will drop from 20% to 17% two years from now. The tax revenue will be levied at the zero rate on aircraft and ship builders, hotels and light industry for a period of ten years.
