KIEV, December 12 (RIA Novosti) - Ukraine's president has vetoed the 2007 budget and returned it to parliament, demanding higher social spending, the presidential press service said Tuesday.

Viktor Yushchenko said in a statement on his official Web site that estimates of living costs in the budget, on which pension payouts are based, are too low.

The budget, adopted by lawmakers on December 6, envisions GDP growth of 6.5% to 594 billion hryvnias (some $117 billion), budget revenue at $292 billion, and expenditure at $319 billion.

Yulia Tymoshenko, the leader of an opposition bloc, said Monday the budget was adopted with falsifications, and urged the president not to sign it.

The Western-leaning president has been locked in a power struggle with the governing coalition led by pro-Russian Prime Minister Viktor Yanukovych, since the premier's appointment in August.