The International Monetary Fund is concerned about the reaction of the Verkhovna Rada on the draft tax reform and budget-2016. This was reported by the IMF with reference to the first deputy director of the IMF David Lipton, - according to Ukrainski Novyny.
"After significant work at the technical level, the draft state budget and tax reform were submitted to the Parliament on December 11th. We are concerned about the discussion that took place yesterday in the Parliament, that in fact rejected the government's proposal for the new tax code and the state budget for 2016" - quoted the press service Lipton’s words.
The IMF stressed that the budget deficit for 2016 at 3.7% is a key condition for the completion of the second review under the programme of cooperation of the EFF ofUkraine and the IMF.
At the same time, the condition of structural reforms is not less important and it is supported by the draft state budget of the Ministry of Finance.
The IMF believes that the adoption of the budget, which violates the programme objectives for 2016, will lead to a breach of the cooperation programme and the termination of international financing of Ukraine.
As previously reported, on December 17th the Verkhovna Rada held an extraordinary meeting at which members expressed dissatisfaction concerning submitted package of draft laws including the draft state budget-2016 and changes in the Tax code.