According to Ukrstat revised data, real GDP in the first three quarters of 2013 declined by 1.2% yoy. This decline was offset by real GDP growth in the fourth quarter at 3.3% yoy. As a result, real GDP in 2013 remained at the level of 2012.
Highlight: Anti-crisis measures - CAN THE GOVERNMENT ENSURE MACROECONOMIC STABILITY?
In March the Verkhovna Rada approved the Revised State Budget for 2014 and the amendments to the Tax Code and social assistance laws. These Laws are directed at long-overdue fiscal consolidation. They should contribute to macroeconomic stabilisation in Ukraine.
In the new version of the State Budget for 2014 planned revenues and expenditures were revised downwards. New budget parameters take into account recent tax increases and other revenue-raising measures. However, planned central fiscal revenues were reduced by 5.7% as new revenues were insufficient to offset effects of worsening economic situation and overly optimistic macroeconomic assumptions used for initial planning of revenues. To increase revenues the Government increased VAT and PIT rates for some taxpayers and hiked excise tax rates and natural resource charges.
View the contents of the new issue of MEMU No.4 (162)
