Cabinet To Submit 2005 Budget Amendments To Parliament On March 21.

Concorde Capital: The initially populist budget, adopted on Dec. 2004, would have implied a deficit equal to 4.2%-6.% of GDP according to government sources. This level was considered unacceptable and the budget was supposed to be amended and re-approved by the end of February. Previously, President Yushchenko said the budget would have a deficit of 0% of GDP, but the government now expects the target deficit will be around 1% of GDP. However, we do not see enough revenue sources to reduce the deficit to such a low number. Prime Minister Yulia Timoshenko’s strategy is to bring the economy’s shadow money into the light, and thus into the budget. Regardless, we see only promises and will maintain our economic forecast for now.