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10 April 2013

Tighter fiscal policy could boost Ukraine’s growth, says World Bank

More efficient public spending would help Ukraine to complete the ‘vast’ array of structural and economic reforms needed to jumpstart growth, according to the World Bank.

In its latest economic update on the East European country, published today, the Bank noted that lower-than-forecast growth and inflation meant central budget revenues for the second half of 2012 had come in at UAH33bn lower than forecast.

This shortfall, which was equivalent to 2.5% of Ukraine’s gross domestic product, was accompanied by a hike in social spending equivalent to over 2% of GDP, which helped to push the country’s budget deficit up to 4.5% of GDP last year. This compares with 2.8% in 2011.

http://www.publicfinanceinternational.org/



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