You're reading: Tihipko: inflation to patch ‘holes’ in budget for 2010

The government of Ukraine intends to implement the budget at the expense of inflation in 2010, according to Serhiy Tihipko, who has announced his plans to run for Ukrainian presidency.

“Next year, the cabinet intends to fulfill the budget at the expense
of inflation,” Tihipko said, commenting on the macroeconomic indicators
of the law “On the state budget for 2010,” signed by the government on
Monday, Tihipko’s press service reported.

The politician noted that experts forecast that in 2010 that real
inflation will be not 9.7%, as is foreseen in the draft, but 17%.

“One doesn’t exclude that inflation will become the resource at the
expense of which the premier will raise salaries by 20% for teachers
and doctors in 2010,” Tihipko said.

According to him, in conditions of crisis the budget should be based
on the indicators connected with economic development, and it shouldn’t
be drawn up on the principle of “patching holes.”

“The government intends to increase revenues to the budget by 19%,
relying on a 3% rise in production. But it’s not enough in order to
finance spending, which was increased by a quarter in comparison with
this year,” Tihipko said.