The FINANCIAL — Prime Minister Yulia Tymoshenko has sent a letter to President Viktor Yuschenko to ask the president impose a veto against the law increasing social security standards, which was endorsed by the Verkhovna Rada on October 20.
Ukrainian News learned this from a statement by the mass media department of the Secretariat of the Cabinet of Ministers.
"While confirming the aspiration for holding economic reforms even in the environment of the world financial crisis, I ask you impose the right of the president of Ukraine to veto against the said law," the letter reads.
Tymoshenko accuses certain political forces of being guided by exclusively pre-election populism at the expense of possible destabilization of the economic situation in the country.
Tymoshenko's proposals to the law attached to the letter note that the implementation of the law will require boosting the expenditures of the 2009 national budget by UAH 8.1 billion and the expenditures of the 2010 national budget by UAH 71.3 billion.
According to Tymoshenko, the growth in the expenditures of the national budget could be compensated through taking loans, which is impossible, as the sum is too big, or through layoffs of 1.6 million of employees of the budget sector of the economy.
According to the calculations of the Cabinet of Ministers, the increased minimum wages will force legal entities to find additional UAH 87 billion or to take to mass layoffs.
The Cabinet of Ministers believes that the law violates the Constitution, as only the law on the national budget and some other laws can endorse expenditures of the state for social needs.
As Ukrainian News earlier reported, the Verkhovna Rada fixed the minimum wage (which is now UAH 669 per month) at the level of UAH 744 from November 1, 2009; at UAH 869 from January 1, 2010, at UAH 884 from April 1, 2010; UAH 888 from July 1, 2010; UAH 907 from October 1, 2010; and at the level of UAH 922 per month from December 1, 2010.
The International Monetary Fund expects President Viktor Yuschenko to impose veto against a law increasing social standards in Ukraine.
The faction of the Party of Regions at the Verkhovna Rada expects President Yuschenko to sign the law.
Verkhovna Rada Chairman Volodymyr Lytvyn is confident, that Yuschenko will sign the law.
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