Ukraine's Parliament Adopts State Budget With 3.7 Percent GDP Deficit

KIEV, December 29 (Sputnik) — The Ukrainian Parliament adopted on Monday the state budget for 2015, envisaging a 3.7 percent GDP deficit.

This decision was supported by 233 parliamentarians, with the necessary minimum of 226 votes.

The state budget will be revised no later than on February 15, 2015. Ukrainian Prime Minister Arseniy Yatsenyuk said that the budget will be adjusted, "depending on the outcome of negotiations with international financial institutions."

According to the adopted document, GDP in Ukraine will decline by 4.3 percent in 2015, inflation will stay at the level of 13.1 percent, the national debt limit — at 68.3 percent of GDP or $74 billion. The amount of payments to service the national debt in 2015 is expected to reach $4.7 billion.

The budget includes an increase in the cost of the security and defense of Ukraine. In 2015, Ukraine will allocate 5 percent of GDP for defense needs. In particular, the defense budget will amount to 3 percent of GDP and the budget for security — another 2 percent.

As a result of the ongoing political crisis in the country, Ukraine has found itself on the verge of a default. Kiev authorities are trying to rescue the country’s economy with international loans.