KIEV, April 23 - The government of Ukraine, thanks to agreements reached with Russia on natural gas price reductions, intends to reduce the budget deficit planned for this year from 6% to 5% of GDP, Prime Minister Mykola Azarov said.

"We plan to have a 5% budget deficit and 1% we will leave on Naftogaz's deficit. It's true, I'm planning for us to balance Naftogaz in light of the signed gas agreement with Russia," the government press service quotes Azarov as saying at a meeting with European Commission member Stefan Fule on Thursday.