Yushchenko vetoed Tuesday the 2007 budget and returned it to parliament, demanding higher social spending.
The government said in a statement that the president's proposals are not based on realistic estimates and are therefore in conflict with Article 95 of Ukraine's Constitution that posits a balance between revenues and expenditures as the fundamental principle of the state budget.
Yulia Tymoshenko, the leader of an opposition bloc, said the presidential veto benefits the Party of Regions, led by Prime Minister Viktor Yanukovych.
"They [the Party of Regions] will not seek to override the veto. It serves their cause," she said, adding the party will blame all socio-economic problems on the president and the "orange team" which supports him.
Viktor Yushchenko said in a statement on his official Web site Tuesday that estimates of living costs in the budget, on which pension payouts are based, are too low.
The budget, adopted by lawmakers 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.
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.
