Cabinet's Draft 2007 Budget Passes First Reading

Parliament yesterday gave preliminary approval to the government’s draft 2007 budget despite the objections of the Our Ukraine party, which warned that the president would veto the draft if adopted by parliament in its present form. A majority consisting of the Regions, Socialist and Communist parties and more than a dozen Our Ukraine, Tymoshenko bloc and independent MPs approved the budget on first reading, and also adopted a resolution asking the government to incorporate or to please consider incorporating scores of amendments proposed by varies parties and MPs. Most amendments with a financial impact were in the “please consider” category. Tom Warner: The coalition appears to be willing to adopt a budget roughly in line with the Cabinet’s draft, which is similar to this year’s budget with a deficit of 2.5% of GDP. However, the serious horse-trading won’t start till the second reading.