Azarov orders support for domestic producers in state budget for 2014


Ukraine's state budget for 2014 should focus on support for domestic producers.

Ukrainian Prime Minister Mykola Azarov said this at a Cabinet of Ministers meeting on Wednesday during the discussion of the country's draft state budget for the next year.

"First and foremost, the draft budget should be aimed at supporting domestic producers. This year the government started implementing the state economic development stimulation program for 2013-2014. All this should be consistently continued next year," the head of government said.

He said that in 2014 the real sector of the economy will get a reduction in tax rates: VAT - from 18% corporate income tax to 16%. "Therefore, it's necessary to envisage compensators for possible temporary budget losses," he said, adding that it is necessary to determine a list of facilities offered for privatization.

In addition, the prime minister noted that during the drafting of the state budget for 2014 it is necessary to resolve the president's task of shift the emphasis of fiscal policy on the regions and ensuring an increase in the share of expenditures of local budgets in the consolidated budget of the country.

Azarov also instructed the Ministry of Economic Development and Trade, in cooperation with the National Bank of Ukraine, to make a reasonable forecast for macroeconomic figures, adding that given the uncertainty of the prospects for global economic development in 2014 it is necessary to protect the domestic economy from external influences.

"The main factor of growth should be the expansion of domestic demand by implementing the economic stimulation program and raising wages, pensions and other social standards. The head of state is insisting on this," the prime minister said.

He noted that the draft state budget would take into account in full the expenditures on the implementation of the president's social initiatives.