Announcing first six months of economic growth since the fall of the Soviet Union, prime minister hails upturn as testimony to the budget discipline of the new government
led the upturn as testimony to the budget discipline of the new government.
"This is the first time in nine years that Ukraine has recorded a rise in gross domestic product," Yushchenko told a news conference.
Yushchenko's government has laid out an ambitious reform program, though his efforts have yet to wring more than simple praise from the International Monetary Fund.
Yushchenko said GDP had grown at an annual rate of around five percent every month this year while industrial output rose by around 10 percent beginning in February.
"The work which has been done in the first half can be a good basis for the second half and for 2001," said Yushchenko, who was approved as premier by parliament last December.
Ukraine's GDP has more than halved since independence, but the government targets two percent GDP growth this year.
Yushchenko said transparent budget policy was the major government achievement this year. The government had cracked down on barter, tax loopholes and other privileges which deprived the budget of potential revenues.
"The level of budget implementation in previous years was tragic… since the start of this year budget revenues have risen by 47 percent compared to the same period a year ago," he said, though he gave no absolute figure.
Revenues exceeded target by three percent in the first five months, rising to Hr 11.54 billion ($2.12 billion). Ukraine has set itself the task of achieving a balanced budget this year.
Budget implementation is also one of the key conditions of a frozen $2.6 billion International Monetary Fund loan program which the government hopes to get back on track soon.
Yuschenko said unity between the parliament, the government and the president was needed to push through painful reforms of the troubled energy sector, privatization and tax reforms which together would ensure long-term economic growth.
The parliament was expected to vote on Thursday on a draft tax code which envisages considerable tax cuts for companies and individuals, boosting growth and reducing the unofficial economy, Yushchenko said.
Some experts estimate Ukraine's thriving unofficial economy – pushed underground by excessive regulation, stifling taxes and bureacratic corruption – may be as large as the official economy.
