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Ukraine approves budget for 2016, revenues to increase 15.1%

Staff writer ▼ | December 28, 2015
The Ukrainian parliament adopted the state budget for 2016, setting a deficit target of 3.7 percent of the gross domestic product (GDP), in an obvious attempt to secure financial aid from the International Monetary Fund (IMF).
Ukraine   An attempt to secure financial aid from the IMF
The adoption of the budget plan, which was backed by 263 lawmakers in the 450-seat assembly, was one of the key requirements set by the IMF to continue financial assistance to the cash-strapped country.

Ukraine's budgetary revenues will increase by 15.1 percent next year to about $25.9 billion, while expenditures will grow by 14.5 percent to $29.8 billion, the parliament said in an online statement posted on its website.

It also predicted a 2-percent economic growth and an inflation of 12 percent in the coming year.

The budget was passed overnight after several weeks of negotiations between the government and the parliament, which had opposite views on the taxation and austerity measures aimed at closing a budget gap.

Before the budget vote, Ukrainian lawmakers had approved a series of laws, increasing the license duties on alcohol, tobacco and fuels while reducing the tax on employers and unifying the tax rate on personal income.