Ukrainian government will have to cut budget spending – Danyliuk

Ukrainian government will have to reduce budget spending to return the budget in 2016 to the target agreed with international lenders, as the delay in privatization and weak economic recovery has not produced the expected revenue. It was stated by the Minister of Finance of Ukraine Alexander Danyliuk in the interview with Bloomberg, - reports RBC-Ukraine.

 "We had an unrealistic budget for 2016." - said Danyliuk. However, he declined to specify which areas may be aimed to reduce the budget.

 "There are huge fiscal risks and I work every day to reduce them," - he added. In addition, it is noted that the Ministry of Finance of Ukraine predicts that GDP will grow by 1% this year.

It is reported that hryvnia has lost 6.9% against the dollar in early August due to the exacerbation of the conflict between Russia and Ukraine, forcing the National Bank to sell reserves. In view of the fact that, according to Danyliuk, the government sees the hryvnia at the level of 27.2 against the dollar. In addition, he said that inflation would be at 8.1% the next year. At the same time, the government plans to reduce the budget deficit to 2% of the GDP until 2019.