KIEV, Sept. 10 – The Ukrainian authorities and the International Monetary Fund's mission intend to improve a fiscal deficit target for 2010 from 6.5% to 4% of GDP, or UAH 42.1 billion, at the expense of cutting subsidies on the increased gas price for households and heat and power supply companies, holding tax and pension reforms.

The increase of the gas price is to cut Ukrainian national gas company Naftogaz Ukrayiny's operational deficit next year from 2% of GDP to 1% of GDP, whereas tax and pension reforms will allow cutting the deficit by another 1.5% of GDP, the IMF said on Wednesday in materials prepared in July as part of a second report on the fund's cooperation program with Ukraine.