KIEV, July 10 – President Viktor Yushchenko, citing the government’s “understated” 2008 inflation forecast, on Thursday submitted his own amendments to the budget, causing an outcry among political groups questioning the unity of the pro-government coalition.

Although the president is allowed to submit bills to Parliament, it is the government’s responsibility to draft and to submit budgets for approval by Parliament, according to the law.

The development underscores the uneasy relations between Yushchenko and Prime Minister Yulia Tymoshenko, who are seen as rivals at the upcoming presidential election at the end of 2009.

Yushchenko has long been alleging the government has deliberately underestimated the rate of inflation in 2008 to have more flexibility with spending later this year.

Tymoshenko has been insisting on her forecast of consumer inflation at 15.9% in 2008, although the prices have already increased 15.5% in January through June.

Even some of Tymoshenko’s most loyal supporters, such as Serhiy Teriokhin, a former economy minister, believe Ukraine’s inflation will probably hit 19% in 2008.

In his budget amendments, Yushchenko “fixed these shortcomings,” according to a report by the presidential press service on Thursday. The report, however, did not mention the rate of inflation forecast by Yushchenko.

Yushchenko also suggested spending more money on army, but also on building affordable housing, buying grain into state reserves, helping out Naftogaz Ukrayiny to weather steep hike in imported natural gas prices.

“The president believes his bill is optimal for supporting steady rate of economic growth, reducing inflation and solving some of the most acute state problems,” the report said.

The government failed to comment on Yushchenko’s budget amendments, but opposition groups had accused the president of violating the constitution by submitting his own amendments.

“A paradoxical situation emerges since the president and the government have formed the coalition,” Mykola Azarov, the senior member of the opposition Regions Party, said at a press conference. “Why would the president invent mysterious ways of realizing his powers?”

“Wouldn’t it be easier for the president to tell to the government: ‘Hey, guys, I will not sign the budget until such and such proposals are incorporated?” Azarov said.

Petro Symonenko, the leader of the Communist Party, said: “The submitting the budget amendments by Yushchenko is simply a provocation.”

“The provocation is aimed at deepening the conflict between the presidential and government’s camps in order to get political dividends by speculating on expectations of the Ukrainian society,” Symonenko said.

Meanwhile, Parliament was blocked for the second day in a row by Tymoshenko lawmakers that fear the Regions Party has been seeking to launch a no-confidence vote in the government.

The Regions Party accused the government of mismanaging the economy that had led to Ukraine reporting the highest rate of inflation in Europe over the past six months. (tl/ez)