State program on development of Ukrainian economy for 2013-2014 to be ready by Feb. 10, says premier

The Ukrainian government plan to finally approve a state program on stirring up the development of the economy for 2013-2014 no later than the first ten days of February, Ukrainian Premier Mykola Azarov has said.

"The program should have priorities, but not 30 or 20, as we have a shortage of financial resources," he said during the discussion of the draft program at the cabinet in Kyiv on Tuesday.

The premier added that the document should foresee the acceleration of economic reforms, as the president demands and take into account large risks linked to the situation on the global markets and the Ukrainian economy.

He said that among the tools that could be used to stir up the development of the economy is direct budget support, tax and budget stimulation, granting government guarantees to reduce the cost of state credits, the making of state orders, and the development of public private partnerships.

Azarov said that a special attention would be paid to imports replacement, the reduction of energy dependence, including gas dependence, an increase in competitiveness and the development of high-tech sectors.

"There is no place and time for unjustifiable protectionism," he said.

When presenting the program Economic Development and Trade Minister Ihor Prasolov pointed out six of its top-priorities. Among them is the increase of competitiveness, theimprovement of investment climate, and structural reforms in strategic sectors (the state management sector, heat supply, utilities sectors and transport infrastructure).

Another three priorities are the support of the national goods producers and imports replacement, including in the mining sector, light industry, wood processing and agriculture; the development of the following high-tech sectors: aircraft and ship building, missile and space sector, mechanical engineering and the pharmaceutical industry.

The sixth priority is the development of the country's export potential, including the creation of a developed state exports support system.

The minister said that as a whole, the key goals of the program are the provision of growth in the Ukrainian economy in 2013 at no less than 3% and the large-scale upgrade of production facilities and infrastructure.

Prasolov said that the financial need in the realization of the said program is evaluated at UAH 184.9 billion. He said that UAH 47.6 billion would be taken from the national budget, UAH 3.5 billion from local budgets and UAH 7.4 billion from international financial organizations.

The minister expressed confidence that the figures are rather realistic, taking into account UAH 40 billion projected in the national development budget for 2013 and UAH 50 billion in government guarantees.

"The resource provision of the program is rather realistic, " First Vice Premier Serhiy Arbuzov said.