Cabinet of Ministers approves draft legislation on verification and monitoring of social welfare payments

1/16/19

The Cabinet of Ministers has approved the draft Law of Ukraine “On the Verification and Monitoring of State Transfers” prepared by the Ministry of Finance of Ukraine that shall make it possible to settle all legal and organizational principles of verification and to increase the effectiveness of state payments.

Experience of other countries shows that up to 30% of social welfare payments can be misused. This is the reason why the Ministry of Finance has been pursuing the comprehensive monitoring and analysis of social welfare spending since 2016.

“It is important for the state that citizens can have their social subsidies granted without excessive bureaucracy. This is why it is enough to submit a request and the income declaration only to apply for social aid funds. However, the vulnerable point of this simplified procedure refers to manipulation risks, and the verification procedure is designed to detect inappropriate payments to unauthorized recipients, - said Deputy Minister of Finance Yuri Dzhyhyr. – We have allocated sufficient funds for social welfare payments in the budget for 2019, also taking into account the increased gas prices. But this help must only be available for those who really need it.

Taxpayers shall not pay for amenities provided to those who buy cars that cost more than UAH 1.3 million or shares costing like UAH 26.2 million.”

Last year, the Ministry of Finance issued 7.5 million recommendations to examine 6 million recipients of social welfare payments. Thanks to verification conducted in 2017 and 2018, the misuse of at least UAH 14 billion from the state budget was prevented.

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