Rada Sends 2007 Budget To The President

The Verkhovna Rada passed the 2007 Budget last night with 249 votes (23 more than needed), with the bulk of votes in favor coming from the Regions and Socialists.  As it stands the 2007 Budget foresees revenues of 29.3 bln (an 18.3% yoy increase) and expenditures of USD 32.3 bln (a 17.7% yoy increase). The new deficit is expected to be about USD 3 bln or 2.5% of GDP. No major tax reforms are included in the new budget with major financing coming from privatizations (USD 2 bln) and borrowings (USD 1.04 bln). Nick Piazza: Even though the second reading of the budget included some suggestions from the President, Yushchenko’s office said that it was disappointed with the lack of social spending in the current form of the law, leaving the door open for the possibility of a veto.