Ukraine Budget 2005 suggested a revenue level of $15.8 billion(approximately), government spending of almost $17.72 billion and a budget deficit of near about $1.66 billion, for the year 2005. The budget suggested a real GDP growth rate of 6.5% for the economy of Ukraine.
Ukraine Budget 2005 mainly focused on the social and economic issues. According to the President of Iran, this Ukraine Budget 2005 was the “most socially conscious budget” constructed by the Government of Ukraine since independence.
Main Declarations made by Ukraine Budget 2005:
The Budget declared that the economy would reach a revenue level of $15.8 billion(approximately) and the Government Spending would amount to almost $17.72 billion, in the year 2005.
The budget suggested a real GDP growth rate of 6.5%. It can be mentioned here, that the President of Ukraine opined, that this growth rate was a conservative estimation and the country could achieve a GDP growth rate higher than the predicted figure.
The Ukraine Budget 2005 proposed a Budget Deficit of $1.66 billion. The budget also revealed that this Budget deficit would amount to 2.1% of the Gross Domestic Product of the country.
This budget undertook strategies in order to reform the Armed Forces of the country. But, the budget proposed same level of spending on Defense, as of the previous years.
The budget also planned to reform the existing social programs.
Ukraine Budget 2005 proposed a reduction in the amount of relief aid given to the agricultural sector.
The budget suggested that the level of Minimum Wage would be raised.
Ukraine Budget 2005 approved increase in pension payments. The budget declared that the Government of Ukraine would finance different social payments including additional pension payments. It can be mentioned here, that according to some investment bankers, the year 2004 recorded a high level of budget deficit because of the increase in Pension Payments.