KIEV, Dec. 9 – In the most sweeping move yet to reform the government, President Viktor Yanukovych on Thursday slashed the number of seats in the Cabinet to 16 from 24, also trimming state agencies and committees.

The move is aimed at cutting spending on bureaucracy and also at reducing corruption, while the reform is thought to be an essential measure for improving governance in Ukraine.

“Let’s make the step into the future,” Yanukovych said. “Let’s fight corruption at the expense of deregulation and let’s optimize state finances.”

Ukraine is under pressure to cut spending next year after implementing a tax reform that is aimed at cutting corporate taxes in order to boost economic growth.

The government plans to narrow budget deficit to 3% of GDP in 2011, compared with expected 5.5% of GDP in 2010, according to Prime Minister Mykola Azarov.

Ukraine has been frequently criticised for having 24 members of the government - one of the largest governments in Europe - underscoring the influence and clout of bureaucracy in the country.

This will finally come to an end.

“Sometimes it’s painful to approve such decisions, but there is no other way around,” Yanukovych said. “We have to build an effectivce and just country.”

As part of the administrative reform, Yanukovych will cut the number of state bodies, such as ministries, committees and agencies, to 64 from 112, according to Tymofiy Motrenko, the head of the main departmt of the State Service.