The ambassadors of the seven industrial nations — United States, France, Italy, Japan, Great Britain, Germany and Canada — came down firmly on the side of the government’s budget proposal, pushed forward by Finance Minister Natalie Jaresko.
A rival tax and budget plan is being touted by members of parliament Nina Yuzhanina and Tetiana Ostrikova. However, according to Finance Ministry and International Monetary Fund estimates, the parliament plan would create a budget deficit larger than the 3.7 percent of gross domestic product set by the IMF.
At stake is another $4 billion in Western credits, including a low-interest $1.7 billion IMF third-tranche loan. Ukraine’s government will spend, in any case, less than $40 billion a year – about 40 percent of the expected 2016 GDP of $94 billion.