On November 15 Verkhovna Rada passed the 2002 budget bill, displaying rare unanimity (274 ayes) and accepting the budget committee’s findings and proposals. The cabinet is instructed to adequately increase financing of the Ministry of Internal Affairs, health care, and education.
However, on Wednesday the budget bill issue remained ambiguous. Four draft resolutions were expected voted on (the bill passed was supported by eleven parliamentary groups: the NDP, SDPU{o}, Yabluko, Greens, Democratic Union, People’s Rukh of Ukraine, Ukrainian People’s Rukh, Reforms Congress, Solidarity, Trudova Ukrayina {Labor Ukraine}, and Regions of Ukraine). Premier Kinakh, addressing the conciliation council of the parliament and government (officially known as the Consultative Board for Cooperation between the Cabinet of Ministers and Verkhovna Rada), merely noted that a joint draft resolution on the state budget could be worked out and that maximum compromise had been reached on the issue. He added that the cabinet regarded the 2002 budget bill as balanced, realistic, and transparent; he had information saying that the cabinet objected to the inclusion of privatization proceeds under budget revenue items and to expansion of the tax base. Mr. Kinakh announced that the budget committee “regrettably insists on its stand” in not accepting all of the cabinet proposals. Finance Minister Ihor Mitiukov also said there was no coordinated draft Verkhovna Rada resolution on the 2002 budget program and that the cabinet’s proposal pointed to the possibility of the budget bill being supported by the government provided the parliamentary budget committee’s findings and proposals are approved by the parliament “in general.” However, Mr. Mitiukov noted that the proposal was not supported by the parliamentary committee, so he once again moved to adopt the government’s bill as coordinated between the cabinet and parliament.
Without doubt, President Kuchma’s views have influenced the budget process. He said that Ukraine has all conditions for the enactment of a “realistic” budget for next year, adding, “I would like this budget bill to be approved.” Verkhovna Rada heeded the phrase. The president disapproved of the amendments proposed by the budget committee and said they were “un-Ukrainian.”
Some sources insist that parliament’s unanimity was encouraged by the International Monetary Fund. Julian Berengaut, director of the Second European Department, summed up the bank’s mission in Ukraine, saying that Ukraine could receive a regular EFF loan installment of $370 million in the first ten days of January. He added that among the basic conditions was enactment of a transparent and realistic 2002 budget program. UNIAN reports that the IMF regards the cabinet budget bill as a “quality and professionally prepared document,” hoping that it will not lose its professional quality in the parliament.
Meanwhile, Chairman of the Accounting Chamber Valentyn Symonenko told The Day on November 15 that the 2002 budget bill is based on a program-goal method and crumbles on closer examination because, in his opinion, it does not contain a single realistic program. Nevertheless, the budget bill has to be submitted to parliament by the date of the second reading, that is, before November 22. The Day’s experts believe that the budget committee’s proposals, accepted in the first reading for tactical reasons, will mostly be left out, meaning further heated debate.
