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28.04.2010
Credit-Rating: Adoption of the State Budget Enables to Solve the Problems of the State Program Budgeting
Credit-Rating notes that performing of budget indicators at all
budget system’s levels in 1Q2010 under absence of the state financial plan has sharpened
problems connected with funding capital expenditures and a number of current expenses
that are not related to immediate. On April 27, 2010, almost 4 months after the beginning
of the budget period the Law on the State Budget 2010 was passed in the first reading.
The passing of the law will allow for only partial solving of the issues associated with
finding of budget programs.
Credit-Rating notes that poor pace of budget revenues in 1Q2010 (14.6% of revenues planned for 2010) reflects hardships with balancing state finances that remained unsolved in the current budget period. In 2010 the pressure on the state budget expenditures will be rising following increase of the social standards and consequently, growth in the expenses for funding the budget sector and covering deficiencies in the Pension fund. At that the payables accrued in the previous budget periods will remain to be repaid coupled with increased expenditures for servicing the state debts.
According to Elena Samoylova, a head of Credit-Rating’s municipal sector, ‘in 2010, considering the planned increase in the budget expenditures and revenues (by 33.5% and 18.7% respectively), the problem of drawing resources to the budget in necessary amounts, including for fulfillment of anti-crisis measures, is going to remain.
Credit-Rating agency has operated in the Ukrainian market since 2001 being committed to assignment of the national scale ratings. The agency has assigned 1081 ratings. As at Apr. 1, 2010 the agency’s list of ratings include 646 ratings: 502 in corporate, 98 in financial and 46 in municipal sectors. In March 2010 the agency assigned 4 ratings, revised 210 ratings, suspended 32 ratings and withdrew 18 ratings.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and
analytic department
Sergey Rozumyak +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
