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Ukraine parliament slams Cabinet for budget management

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KIEV, July 27 (RIA Novosti) - A senior member of Ukraine's parliament attacked the government Thursday for its budget-management record.

"Negative trends in the national economy, which we saw in full in 2005 and which continued into 2006, result largely from the Cabinet's unprofessional budget management in 2005," said Nikolai Azarov, the chairman of parliament's budgetary committee.

He added that the borrowings policy had been particularly ineffective.

At a plenary session Thursday, parliament asked the Prosecutor General's Office to study materials on the Cabinet's budgetary performance in 2005 and to bring anyone guilty of transgressions to justice.

Lawmakers recommended that the Cabinet improve the planning of key economic and social indicators to make sure no violations are committed this year.

They passed a resolution setting out budgetary policy guidelines for 2007.

The document proposes stabilizing the taxation base, reducing the fiscal burden on the economy, and making revenue forecasts based on macroeconomic indicators. It also calls for government upkeep spending cuts.

Prime Minister Yuriy Yekhanurov said Wednesday that Ukraine's GDP was currently growing at 5% and that the rate could soon rise to 6%. He also said that production growth was the fastest in the eastern region of Donetsk, the nation's industrial backbone.

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