It would be expedient to increase Ukraine's budget deficit in 2009 to 10% of GDP to expand state investment in the economy, according to the former deputy governor of the National Bank of Ukraine (NBU), Oleksandr Savchenko.
“The budget deficit in Ukraine should be 10%, and not 6% [of GDP] as we plan. In absolute figures, 10% is around UAH 100 billion. One should not afraid of this sum… One can use even UAH 100 billion of printed money without [prompting] skyrocketing inflation and devaluation, if the money were invested using adequate instruments and into efficient projects,” he said in an interview with the Kontrakty weekly.
According to unofficial data, Savchenko last week was appointed deputy finance minister.
