Ukrainian President Viktor Yanukovych has signed the law introducing amendments to the law on Ukraine's state budget for 2012, his press office reported on Monday, Apr. 16.
"The law envisages additional expenditures from the general fund of Ukraine’s state budget for the implementation of the social initiatives of the head of state, which will help take measures to overcome poverty and solve other pressing problems," reads the statement.
As reported, on April 12, the Verkhovna Rada, Ukraine’s parliament, approved the government’s amendments to Ukraine’s state budget for 2012 to implement the social initiatives of Ukrainian President Viktor Yanukovych.
A total of 271 of the 400 MPs registered in the sitting hall voted for a relevant bill. The BYT-Batkivschyna parliamentary faction ignored the vote. The document was supported by 188 members of the Regions Party faction, eleven MPs from the Our Ukraine – People’s Self-Defense faction, 24 members of the Communist Party, 18 MPs from the People’s Party faction, 19 members of the Reforms for Future group, and eleven independent MPs.
While presenting the bill on amendments to the state budget, First Deputy Finance Minister of Ukraine Anatoliy Miarkovsky agreed with proposals of the Verkhovna Rada Committee on Budget. In particular, the parliamentary committee proposed increasing expenditures by UAH 453.76 million in extra incomes from import duty.
The committee proposed spending UAH 295.9 million of these funds on subsidies to local budgets, UAH 30 million on support for national theaters, UAH 30.7 million on the development of higher educational establishments, UAH 30 million on information and analytical support for coordination of activities in the sphere of national security and defense, and UAH 15 million on the formation of the judiciary.
In addition, the committee proposed spending UAH 500 million in projected development costs on consumption expenditures of the budget program for the fulfillment by Kyiv of the functions of the capital.
The Cabinet of Ministers of Ukraine proposed that the Verkhovna Rada increase the revenues and expenditures of the state budget for 2012 by UAH 33.35 billion, to UAH 366.17 billion and UAH 391.36 billion respectively, without changing the limit of the deficit.
According to bill No. 10317 on amendments to the state budget, which was submitted by the government to parliament on April 9 and published on April 10, the revenues of the general fund are to be increased by UAH 28.8 billion.
"The sources of the increase of revenues of the general fund include economic growth and removal of businesses from the shadows – UAH 21 billion, the indexation and payments for administrative services – UAH 1.8 billion, and bonuses from signing production sharing agreements – UAH 6 billion," reads the explanatory note to the document.
The government explained that the state budget for 2012 is based on the forecast of growth of import by 6.4%, as in Q1 incomes from import value-added tax (VAT) grew by 23.8%. Considering this, the government increased forecast on import VAT in 2012 by UAH 14 billion.
The government also expects to receive extra UAH 2.6 billion from domestic VAT, UAH 3.4 billion from income tax, and UAH 1.5 billion from payments for administrative services.
According to the bill, UAH 18.2 billion of extra income will be spent on the implementation of the president’s social initiatives, and UAH 6.15 billion will be spent on the compensation for depositors of the former Soviet Sberbank.
In addition, the document foresees spending of UAH 1.2 billion on making work of miners more prestigious, UAH 1 billion – on making mortgage credits cheaper, UAH 0.99 billion – on state capital expenditures controlled by the Cabinet, and UAH 0.3 billion – on increase of wages for employees of municipal state administrations.
If the document is adopted unchanged, funding of the sports sphere will increase by 19.5%, or UAH 232.5 million, and expenditures on development of elite sports will grow by 77.6%, or UAH 157.6 million. Some UAH 44.3 million will be spent on the preparations for the 2013 athletics world championship, including UAH 33.5 million – on the preparation of facilities in Donetsk.
The document also proposes to allocate additional UAH 100 million on development of the State Tax Service (UAH 40 million will be spared on the National University of the State Tax Administration) and UAH 100 million – on the Electronic Customs system.
