This year

In particular, the last program of cooperation between Ukraine and the IMF has become a reality thanks to the efforts of the National Bank. In addition, at the initiative of the National Bank of Ukraine has developed and implemented by all executive agencies to plan anti-inflationary measures in 2009 (hereinafter - the Plan) and Memorandum of the Cabinet of Ministers of Ukraine and National Bank of Ukraine on cooperation in order to achieve price stability and sustainable economic growth (hereinafter - the Memorandum .) Time, unfortunately, we must recognize that the implementation of these documents is a mere formality, and key events are not executed. Government actions often did not correspond to the tasks that have been declared. Despite the declaration of the fight against inflation, the government did not make the key anti-inflation steps, namely, increased fiscal spending. That is, there was a lack of coordination between policies of two governments: at a time when the National Bank conducted monetary policy aimed at reducing inflationary pressures (including by maintaining the optimal level of liquidity in the banking sector), the Government continued expansionary fiscal policies on current consumption . In the 2008 budget there were a number of positions that have driven inflation. Government's action on socio-oriented fiscal policy in conflict with the Memorandum and Plan. First, despite the proclaimed intentions for no increase in expenditures of the state budget and the direction of excess receipts only to reduce the budget deficit, the Law of Ukraine "On State Budget of Ukraine for 2008" was revised several times, resulting in the expenditure part was increased by 20.8 billion UAH. Second, fiscal policy was mainly aimed at current consumption. So for the first five months of the year capital expenditure not funded almost (January - May is 8.6% lower than in 2007). Even allowing for an increase in funding in June - October, the share of capital expenditure remained low (9.8% for 11 months). In addition, the share of current expenditures of the state budget for the first 11 months was 90.2%, respectively. Third, there is a contradiction rendered the situation in the Plan to increase salaries in line with productivity growth. Both internal and external independent experts, in contrast to the Ukrainian authorities believe that the main reason to consistent deepening financial crisis in Ukraine is a long time (since 2005), a consumer boom, greatly exceeds the capacity of the economy (GDP growth does not match, and accordingly labor productivity). Topic: Banking System