KIEV, Oct. 17 – Ukraine's national budget deficit will fall from 1.6% of GDP in 2012 to 1% of GDP in 2013, forecasts the Finance Ministry.

"The reduction in the national budget deficit to 1% in 2013 and 1.5% in 2014 will provide moderate growth in the state debt, which will not exceed the GDP growth rate. Retaining this deficit level is to be achieved through increasing budget revenues and optimizing budget expenditures," a statement from the ministry reads.

The sources of financing the deficit will be foreign and domestic borrowing, as well as funds from the privatization of state property. It is planned to keep the state debt level at 28% of GDP in 2013 and 2014, Interfax-Ukraine reported.