The state budget of Ukraine: mechanisms for its balancing
On the motion of Prime Minister of Ukraine Mykola Azarov, the Verkhovna Rada of Ukraine adopted the State Budget for 2014 on 16 January, 2014. The main macroeconomic indicators, on the basis of which it was devised, were populist and highly overstated. It could be described as a budget:
1. of the social orientation before the presidential election in 2015 (an increase in social standards: the subsistence minimum per person and the minimum wage – by 6.8%, bringing about preferential conditions for certain segments of the population at the expense of credit funds from the Russian Federation and the domestic capital market);
2. inefficient use of funds for activities which are of secondary importance to the economy of Ukraine, which is in a recessionary and pre-default state (debt payments in 2014 amount to 95.5 billion UAH or 24.1 % of the planned revenues to the state budget).