III. Comprehension.

Exercise 12. Read Text B and answer the questions in your native language:

1. What documents do direct the process of developing of the State budget of Ukraine?

2. What are 5 stages of creating the Budget?

3. What is the process of presenting and adopting of the Budget?

4. What is the Budget composed of? What is the role of the Disbursement Chamber?

5. What is a budget deficit? What is a budget surplus? What is a budget debt?

Text b How the State Budget of Ukraine is created

The State Budget is a centralized fund in disposal of the Government.

In Ukraine the process of creating the State Budget is ruled by the Constitution of Ukraine an by the “Law on the Ukrainian budget system”. According to the law this process is divided into five stages:

1. budget drafting

2. analysis and consideration of a budget

3. confirming of a budget

4. budget execution

5. reporting on its execution.

General directions of the budget policy of Ukraine are determined by the Verkhovna Rada . The organization of budget drafting is the responsibility of the Cabinet of Ministers. The latter presents the draft of the “Law on the State Budget of Ukraine” to the Verkhovna Rada every year on the 15^th of September. It is the draft for the next year containing the report on the execution of a current year budget. In the case of meeting all the requirements the Verkhovna Rada adopts the State budget for the period from the 1^st January to the 31^st of December. In the same way the budget of the Autonomous Republic of Crimea and local budgets are confirmed. All budgets must be presented by central and local MEDIA.

The State Budget is composed of revenues and expenses. The main part of revenues comes from taxes. The control over the spending and allocation of budget money is performed by the Disbursement Chamber. The State Budget of Ukraine as well as state budgets of many countries is characterized by the deficit.

A budget deficit occurs when a government spends more money than it takes in from taxes. The opposite is a budget surplus. An accumulated deficit over several years is referred to as the government debt.

Notes:

In disposal – y розпорядженнi

budget drafting – процес створення проекту бюджету

consideration – розгляд

confirming – затвердження

Disbursement Chamber – Розрахункова палата

IV. Oral practice.

Analyze the statistical data. Look through the largest national budgets (2004). Define the country with the largest GDP; with the highest/ lowest revenue and the highest/lowest expenditure; with the highest rate of a budget deficit/ with a budget surplus. Make your conclusions.

The largest national budgets (2004)*

Nation	GDP	Revenue	Expenditure	Budget Deficit
US (federal)	11700	1862	2338	-25,56 %
US (state)		900	850	+5%
Japan	4600	1400	1748	-24,86%
Germany	2700	1200	1300	-8,33%
UK	2100	835	897	-7,43%
France	2000	1005	1080	-7,46%
Italy	1600	768	820	-6,77%
China	1600	318	349	-9,75%
Spain	1000	384	386	-0.52%
Canada (federal)	900	150	144	+4,00%
South Korea	600	150	155	-3,33%

* in billions of US $