THE EVENING PLENARY MEETING OF THE FIRST SESSION OF THE VERKHOVNA RADA OF UKRAINE OF THE 6TH CONVOCATION WAS HELD ON THURSDAY 27 DECEMBER
Having opened the Morning Sitting, the Chairman of The Verkhovna Rada of Ukraine, Arseniy Yatseniuk, notified the Auditorium that yesterday The Cabinet of Ministers had considered and approved the Bill on The State Budget of Ukraine 2008, and forwarded it to The Verkhovna Rada.
The Chair then reminded the Meeting that this Bill will be considered today using the Ad Hoc Procedure.
This Procedure is laid down in a relevant Draft Resolution, which he put to the vote.
The Verkhovna Rada passed the Resolution on the Procedure and Specific Aspects for consideration and adoption of The Law of Ukraine ‘On The State Budget of Ukraine 2008´ and amendments to several legislative Acts of Ukraine.
Yulia Tymoshenko, Prime-Minister of Ukraine, presented the Draft Bill. Beginning her address, she remarked that the Government had only worked on the Budget proposal for seven days, yet has drafted a well-balanced State Budget.
Yu. Tymoshenko emphasised those issues able to affect the formation of Budget Revenues, such as the termination of several Laws in the coming year which will lead to a loss of 18 billion Hryvnias, the safeguarding of Benefits and Social Guarantees resulting in a deficit of 70 billion Hryvnias, and the increase in prices for energy carriers.
The Prime Minister provided a detailed account of the major macro-indicators and indices of social development. She suggested that they are adopted so that the preparation of amendments to the Bill could begin early in the New Year and approved at the end of February or the beginning of March.
Yu. Tymoshenko then stressed that 'This is the first Budget that does not halt a single Social Law'. She stated that Social expenditures will show a 57% grow, or 16 billion Hryvnias.
The Prime Minister reported on the Budget´s basic parameters: minimal living wages, minimal wages, and Retirement Benefits which will also increase. She also stressed that the Government will concentrate on Pension and Retirement Reform next year, so that the Pension and Retirement Code could be adopted by the end of next year.
Yu. Tymoshenko elaborated on the increased Child Support Benefits, and on the considerable growth of monetary aid paid out on the birth of a child. She stressed: 'All our obligations to the Voters are now becoming the Action Plan for our team.'
The Prime Minister informed the Auditorium of the increased expenditure of the Pension and Retirement Fund by 9.9 billion, or 40% , to enable the payment of Retirement Benefits.
Yu. Tymoshenko then spoke at length on the Programme for the return of depreciated deposits to individuals. She said that a revolution' is envisaged in the 2008 Budget, in terms of the return of these sums. Yu. Tymoshenko reminded those present that the preceding Government intended to allocate 700 million Hryvnias for this purpose. The Cabinet of Ministers, headed by The Prime Minister, will allocate 20 billion Hryvnias to this project.
The Prime Minister also reported on substantial, as compared with the current year, increases of expenditure towards transfers to the Local Budget, towards State Defence and Security, State support of Education, Public Health etc.
Concluding her speech, Yu. Tymoshenko, said that she believes that the Law on The State Budget will show substantial adjustments within the next two months.
The Minister of Finance, Viktor Pynzenyk, then took the floor. He added to The Prime Minister's Report emphasizing the Budget financial component. V. Pynzenyk stressed that a failure to adopt The State Budget will result in serious repercussions. Increases in the Minimum Wage and Minimum Retirement Benefits will be made impossible. And there is a risk that no Retirement Benefits will be paid out, and that Local Budgets will not be adopted.
Replying to questions from the People's Deputies, who drew attention to the fact that the social indicators in the Budget proposal are based on an inflation level of 7.7%, as reported in May, V .Pynzenyk said that these indicators will be revised once the Budget has been corrected and amended.
Following the Report by The Minister of Finance, the Chair notified the People's Deputies of the tragic death today of Benazir Bhutto, Pakistan´s Leader of the Opposition.
One Minute's Silence, proposed by A. Yatseniuk, was upheld by The People's Deputies in memory of B. Bhutto.
Members of Factions and People's Deputies took part in the discussion of the Bill.
After the Faction Members took the floor, The Chair moved to continue the Plenary Meeting and to finish consideration of the Bill on The State Budget 2008. This was seconded by the People's Deputies.
Those pronouncing on the Bill, as introduced by the Government, expressed both support and criticism, calling it ‘unacceptable´. The People's Deputies of the Coalition Factions called for the adoption of this imperfect Bill.
The People's Deputies from the Party of Regions Faction commented that they were unable to discern any differences in this Bill from that introduced by the Government led by V.Yanukovych.
The People's Deputies from the CPU Faction also referred to this Bill as unacceptable.
Following these addresses, a recess was called in the Meeting, during which the Faction Members held a meeting of The Conciliatory Council.
After this interval, A.Yatseniuk informed the Auditorium of the decision taken at The Conciliatory Council Meeting. This Council recommends that the Bill on The State Budget 2008 is tabled for consideration by The Verkhovna Rada. The Members of the Council have also decided that the Bill should be considered the following day, and adopted at the First Reading.
The Verkhovna Rada passed a Resolution accepting the considerations of the Bill on The State Budget 2008.
A decision was also taken that the next Plenary Meeting will be opened at 12 am on Friday.
The Plenary Meeting was then closed.