Mykola Azarov, First Deputy Prime Minister and Minister of Finance of Ukraine, is satisfied with the nation’s tax collectors whose performance he praised in his speech dedicated to their professional holiday. Anatolii Brezvin, head of the State Tax Administration of Ukraine (DPAU), happily reported that his agency has received over 28 billion hryvnias’ worth of budget receipts, 77 percent more than last year. He noted that it was difficult to keep the national purse steadily replenished under the strained political circumstances. The State Treasury’s online statistics indicate that in June alone the DPAU provided 4.4 billion hryvnias to the general fund of the state budget.
Another reason for the festive atmosphere on the tax hounds’ red- letter day was supposed to be the draft Tax Code, which is nearly complete and vetted by experts. It had been expected that it would take effect in May. But owing to the ongoing political squabbles, the dreams of the tax authorities are in limbo.
Needless to say, the delay in its ratification will have negative consequences. Azarov offers this dispiriting forecast: “The 2008 budget program will be drafted using the current taxation system as the basis for boosting social disbursements. The rate of the disbursements that we established in late 2006 will be upheld.”
Commenting further on the 2008 budget program, Ukraine’s finance minister promised that there would be no budget deficit increases whatsoever, come what may. Probably by way of agreeing with his critics, Azarov said that the Ukrainian government cannot afford any additional enlistment of foreign funds to date, so all social transfers will be made in accordance with the government’s declared policy in late 2006. It is interesting to note President Yushchenko’s recent statement to the effect that social initiatives will be increased next year. Azarov emphasized that some of them are in line with the official policy, while others require “additional discussions” and carefully considered and reliable sources of financing.
