KIEV, Sept. 15 - Ukraine's budget deficit will increase to 1.9% of gross domestic product next year, up from 1.6% this year, according to a draft 2006 budget that has been submitted to Parliament Thursday.

In nominal terms, the budget deficit will increase to about 9.9 billion hryvnias in 2006, up from 6.8 billion hryvnias in 2005, and will be covered by selling state assets.