Tax reform limited with 2016 budget deficit of 3.7% of GDP - finance minister

"We need to agree on changes to taxation keeping the deficit at 3.7% of GDP," she said at a press conference in Kyiv. She said that the reform proposed by the Ministry of Finance, given other budget revenue cuts, includes a drop in income by UAH 60 billion, which must be accompanied by the same reduction in costs. "We are ready for the same cost reduction, but this requires a serious discussion in the society," Jaresko noted. She said this concerns lower spending on health care, education, defense, social security, opposing cuts in defense and expressing doubt that the society is ready for serious spending cuts in other areas specified. The minister stressed that more radical options for tax reform assume even greater cost reduction, therefore they are acceptable.