The Ukrainian Parliament adopted the 2005 state budget on Thursday. \n \nPresenting the budget, acting Prime Minister Mykola Azarov reported that budget revenues amount to UAH 85.1 billion, the deficit is UAH 8.8 billion, to ensure increased social obligations starting already in January of next year. \n \n339 deputies voted for the 2005 state budget law on Thursday. \n \nAs Azarov stated while presenting the draft state budget in parliament on Thursday, at this time the government has the resources to finance social payments, including pension supplements, at the beginning of 2005. However, it has no right to carry out such financing until the budget law is adopted. \n \nHe reported that the 2005 draft state budget is calculated on the basis of real GDP growth of 6.5% to UAH 410 billion in nominal terms and a cautiously conservative inflation estimate of 8.7%, as well as export growth of 6.9% and import growth of 11.2%. \n \nAs Azarov said, consolidated budget revenue is forecast at UAH 109.6 billion, or 28.6% of GDP, which exceeds this year's consolidated budget revenues by UAH 27 billion or 33%. \n \nAccording to him, consolidated budget expenditures will amount to UAH 120.8 billion. \n \nAccording to him, state budget revenues next year will increase compared to the current year, according to the draft, by UAH 21.5 billion (or 34%), and local budget revenues by UAH 5.6 billion to UAH 24.6 billion, or 29.4%. \n \nAs Azarov noted, during the revision of the 2005 draft state budget together with the budget committee, its deficit was reduced from UAH 11 billion to UAH 8.8 billion by reducing forecast revenues from privatization from UAH 7 billion to UAH 4.9 billion. \n \nHe emphasized that this constitutes only 2.1% of GDP, and a developing economy can afford such a deficit through external and internal borrowing. \nAccording to him, direct and guaranteed state debt will amount to 20.9% of GDP at the end of 2005, compared to 29.5% in 2003 and 33.6% in 2002. \n \n"We are reducing our debts," the acting prime minister stated, characterizing the budget expenditures in the draft. Azarov said the share of social expenditures has been increased by 9 percentage points to over 58%. \n \nAccording to him, such a state budget will allow the pension fund budget for 2005 to be balanced at UAH 50.2 billion, of which UAH 38 billion will be the pension fund's own funds, and the rest will be transfers from the state budget. \n \nAzarov noted that the growth of the pension fund's own revenues is planned at only UAH 6.5 billion, whereas this year it amounted to UAH 10 billion. \n \nBudget Committee head Petro Poroshenko stated from the parliament rostrum that the committee proposes adopting amendments to the 2005 draft state budget by February 15 to improve its quality.