The Ministry of Economy improved its forecast for gross domestic product growth in 2005 from 6.5% to 8.2%, proposing that the Cabinet of Ministers take the forecast changes into account when preparing amendments to the state budget for 2005. Deputy Economy Minister Lyudmyla Musina said this to journalists, according to "Ukrainian News." \n \nShe said that the Ministry of Economy has already sent its proposals on changing the macroeconomic forecasts to the Ministry of Finance. According to her, the Ministry of Economy also forecasts that inflation this year will be 11.2%. Musina expressed doubt about the possibility of achieving the inflation level below 10% in 2005 desired by the Ministry of Finance if the Cabinet fulfills the declared social programs. \n \nShe also considers it possible to reduce the 2005 state budget deficit by revising the financing of a number of state programs. In particular, she noted that Prime Minister Yulia Tymoshenko instructed ministers to identify 5 priority tasks whose program financing will be preserved. Musina suggested that financing of other state programs from the budget will be discontinued. \n \nRecall that Tymoshenko said to journalists on Wednesday that the Cabinet intends to finalize the draft amendments to the 2005 state budget within 2 weeks and then submit it to the Verkhovna Rada for approval. At the same time, Tymoshenko noted that before submitting the draft law on amendments to the 2005 state budget for consideration by parliament, the Cabinet will consult with heads of parliamentary committees, factions and groups in order to know the opinion of deputies about its draft law. Tymoshenko also expressed hope that the 2005 budget will be deficit-free.
The Ministry of Economy improved its 2005 GDP forecast from 6.5% to 8.2%
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