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    Ukraine's Finance Ministry Submits New Budget, Hoping to Avoid IMF Freeze

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    Ukraine's finance ministry has submitted its new budget proposal, which it hopes will allow it to avoid a freeze of IMF funding over disagreements with the country's parliament.

    Ukraine's new budget totals $28.1 billion with a $3.4 billion deficit, according to a new document issued by the country's finance ministry.

    To accommodate the country' new tax system, the finance ministry seeks $2.5 billion in budget cuts, while the country's parliament seeks to cut $8.4 billion. The finance ministry considers the cuts unsustainable.

    The International Monetary Fund has frozen another $1.7 billion tranche for Ukraine because of disagreements over tax reforms.

    Both the parliament and the finance ministry seek to have a military budget of between $3.5 billion and $7 billion, which could make it total more than a third of the national budget if the parliamentary cuts are passed.

    According to IMF projections, Ukraine's nominal GDP for 2015 is estimated at around $90.1 billion. The economy is expected to surpass its 2010 levels by 2020, according to its estimates.

    New IMF funds may also be frozen if Ukraine fails to repay the $3 billion it owes Russia.

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    military budget, budget cuts, Ukraine’s Ministry of Finance, International Monetary Fund, Ukraine
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