Ukraine needs to cut ‘unrealistic’ budget – Bloomberg12.09.2016 15:19 379
Ukraine needs to cut budget spending in 2016 as delayed privatization and a weak economic recovery prevent revenue from keeping pace with costs.
This is said in the article posted on Bloomberg.
"Ukraine’s government needs to cut spending to steer the 2016 budget back to the goal agreed on with international lenders, as delayed privatization and a weak economic recovery prevent revenue from keeping pace with costs," the article reads.
It is underscored that Kyiv is seeking to restart the flow of funds by securing two aid tranches from the International Monetary Fund, EUR 600 million from the European Union and $1 billion in U.S. loan guarantees by the end of the year.
Bloomberg reminds that Ukrainian Finance Minister Oleksandr Danylyuk earlier described the state budget for 2016 as unrealistic and stressed that the fiscal risks were very high. However, he declined to specify what areas may be targeted for budget cuts.