Cabinet to start unpopular reforms soon, VP Tihipko says

By doing so, Ukraine will send a positive signal to the world. “Reforms will be done for the sake of Ukraine, not the IMF,” the VP stressed.
 “The cabinet will be forced to resort to unpopular measures in the nearest months. Fighting corruption, reducing the number of checks of businesses by tax administration and other similar steps will certainly sit badly with officials. But they will certainly be hailed by the public,” Tihipko said. 
Asked how the cabinet intends to cut the budget deficit, Tihipko said it can’t be cut by economic growth alone. “It is necessary to turn to other mechanisms. If we do not cut the deficit, the state debt will grow rapidly,” he answered. 
Tihipko complained that Naftohaz Ukrayiny is a loss-making company, although, in his opinion, it should be profit-making and paying huge taxes into the budget. Tariffs for utility gas supplies must also be upped as part of the cabinet’s austerity program, he reminded. This, in turn, will entail pension fund reforms and switching to new patterns of social benefits. Ukraine’s Pension Fund accounts for 18 percent of the GDP, there are few countries with similar indicators,” the VP stressed.