A. Yatseniuk: State lacks UAH 289 billion, which is almost identical to the amount of the State Budget-2014, to cover budget deficit
The total amount of
the fiscal gap is USD 289 billion. This was started by Prime the Minister of
Ukraine Arsenii Yatseniuk presenting to the Parliament a draft laws on the
prevention of financial disaster, and creating conditions for economic growth
in Ukraine (№ 4576) and on the amendments to the State Budget-2014 (№ 4575).
"The country is
on the eve of economic and financial bankruptcy," A. Yatseniuk said.
He said that the total
fiscal gap is UAH 289 billion, "The country does not have UAH 289 billion to
cover the deficit," he said. According to the PM, this amount is, in
particular, the budget deficit of 2014, which amounts to UAH 71.6 billion, and
UAH 34 billion of so-called inflated revenues of the State Budget of Ukraine
proposed by the Government of Azarov and, which can not be performed as there have
been inadequate macroeconomic performances. "The country had fallen down,
and they showed that the economy was growing. The industry declined, but they
showed that the industry was growing," Arsenii Yatseniuk stressed.
Due to the fact that macroeconomic
framework was calculated incorrectly, the losses of social funds in the amount of
UAH 2.9 billion are included into the amount of the fiscal gap.
The Prime Minister
also stressed the funds of local communities in 2014 are actually at the zero
index as money of local communities, special purpose funds were stolen by Azarov-Yanukovych Government. “The amount of funds absent on the
Single Treasure Account is UAH 79.8 billion,” he said.
Arsenii Yatseniuk also
highlighted the problem of tax administration. "It comes about two figures.
The first figure is overpaid taxes and fees, namely income tax. Ukrainian
companies have paid an income tax amounting UAH 37.3 billion for two years in
advance. The second figure - concerns non-refundable VAT. Ukrainian companies had
been collected a working capital, but VAT in the amount of UAH 21.6 billion was
not refunded," PM informed.
Arsenii Yatseniuk also
noted that courts are being considered cases concerning additional penalties
from the state budget of about UAH 30 billion VAT. "Much of this money is factious
VAT. And it was one of the schemes of embezzlement of funds from the Budget when
the fictitious company filed declarations to the tax authorities to VAT refund,
which no one ever paid," he said.
Due to the fact that the
price for Russian gas is $480 per 1000 cubic meter from April 1, the total
amount of current deficit of NJSC Naftogaz
Also, as he said, UAH 9.2
billion of the total amount is funds that remained from the so-called local
budget imbalance. "UAH 5.2 billion - unbalanced local budgets; UAH 2.3
billion - a public debt service associated with the devaluation of the national
currency and UAH 1.7 billion – compensation of rates for heating," PM
informed.
"So, the country
lacks UAH 289 billion in 2014, which is almost identical to the amount of the State
Budget for the current year," Arsenii Yatseniuk said.
"The Ukrainian
government will not allow the bankruptcy of the country. The package of very
unpopular, very complex, hard reforms that must be passed not yesterday and not
the day before, but in past 20 years, now are offered to the Parliament,"
he said.
Arsenii Yatseniuk noted
that these legislative initiatives are "not ideal." "How we can think
up the perfect law, when we can get 300 billion simply from nowhere, when 70
billion dollars were brought in offshore for three years? But those are the things
and the steps that