| Parliament approves cuts to state budget, funds for coming local elections |
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| Thursday, 08 July 2010 15:49 |
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The Ukrainian Parliament today approved budget cuts by adopting changes to the law "On the 2010 State Budget of Ukraine "(No 6673). A total of 256 MPs voted in favor. A few hours earlier the same bill had failed to receive the necessary minimum of 226 votes. The government has proposed cutting the 2010 deficit by more than $2 billion to 4.99% of gross domestic product from 5.3% of GDP by reducing expenditure on investment programs in agriculture, the coal sector and other sectors. The proposed cuts also affected the State Pension Fund and the Defence Ministry.
Speaking immediately about the successful adoption, Deputy Speaker Adam Martynyuk an MP of the Communist Party, said "Two hours ago Parliament voted down this law because of the stance taken by the Communists. All the proposals of the Communists were taken into account and that is why they voted in favor". However, opposition Yulia Tymoshenko Bloc MP Oleh Lyashko complained that "the stance of the Communists was sorted out in the corridors, but who will do the same for our proposal?" The law also provides around 1 billion hryvnyas for holding the local council and mayoral elections to be held on October 31. Reducing government spending is central to an austerity package which the IMF has insisted that Ukraine should sign as part of a $14.9 billion stand-by program later this month intended to stabilize the economy.
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