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Opening statement by Prime Minister of Ukraine Arseniy Yatsenyuk at a session of the Government on September 15, 2014
15.09.2014 | 17:14
Department of Information and Communication of the Secretariat of the CMU

Yatsenyuk A.P.: Dear members of the Government! Representatives of mass media!

This day the Government has assembled a meeting to consider budget 2015. We have readied two variants of the state budget for 2015.

The first option is to approve the budget based on the current tax basis and pursuant to the current budget law. We have had several sessions of the Government and meetings of working groups, and I can clearly declare it is a common position of the entire composition of the Cabinet of Ministers: based on the current tax basis, without carrying out a tax reform, reform of a single social tax and budget reform the Government will not submit the budget, as it means the budget of economic decline instead of stabilization.

Therefore, several weeks ago the Finance Ministry was commissioned to elaborate a package of real economic reforms that have to become the basis for approval of a new quality budget.

Today the Government is to endorse this package comprising the following laws:

1. It is a new redaction of tax changes.

2. A cardinally new system of imposing a single social tax.

3. Amendments to the Budget Code.

These are cornerstones necessary to submit the fourth thoroughly calculated document - the Law of Ukraine "On the State budget of Ukraine for 2015", which is based solely on the package of economic and social reforms.

The country needs reforms. We appeal to the Parliament to vote on a package of economic reforms tomorrow and, depending on what the Parliament supports, we shall immediately submit the Law of Ukraine "On the State Budget grounded on the new fiscal and budgetary basis.

So, now I invite the Minister of Finance to report on the changes proposed by the Government of Ukraine regarding the abolition of taxes, reducing the tax burden, deshadowing, fiscal decentralization and empowering of local communities, concerning the entire package of reforms much needed for the country.

In other circumstances, the submission of the budget based on the current law is viewed unacceptable. The Government will never agree, in connection with the economic decline by almost 7%, which is caused by war waged by Russia against Ukraine, to cutting all social expenditures.

We have found counterbalance tools, we are aware how to make the budget a stable one and just with this aim the Parliament must vote for a package of economic, tax and budget reforms.

Olexandr Vitaliyovych, I ask you to present our vision of reforms. Here is, by the way, an old budget, the one calculated based on the current law, and here is the new one, to be adopted by the Parliament. I insist it should be supported by the incumbent Parliament. We lack time.

 

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