​The Cabinet of Ministers has improved the mechanism for the monetization of subsidies


At the Government’s meeting on February 21, it was decided to improve the mechanism for the monetization of subsidies which was launched in Ukraine on January 1, 2018.

Draft amendments to the corresponding decree of the Government were prepared by the Ministry of Finance after intensive discussions with all stakeholders including the Ministry for Social Policy, the Ministry for Regional Development, the State Treasury Office, representatives of OSBBs / ZhBKs, experts and members of Parliament.
The agreed amendments are aimed to improve the mechanism for the transfer of funds from the state budget to finance exemptions and subsidies for housing utilities. These amendments address issues registered by the involved parties starting from January 1, 2018, on the basis of the monitoring conducted by the Ministry of Finance.

The Government’s decree enters into force on the day of its publications and is applied starting from January 1, 2018.

“All participants of the process have reached an agreement, because we pursue one common goal – transition from the obsolete and ineffective model of subsidies to their monetization and targeted delivery. All parties share a basically common view on the reform areas of the social welfare system. I thank everyone who was engaged in the preparation and fine-tuning of the project for the monetization of subsidies”, Minister of Finance Oleksandr Danyliuk said.

According to the new decree, payments for housing utilities (maintenance of houses, buildings and ground plots), management of multi-apartment houses, disposal of household waste and liquid sewage will be made on the basis of information from the local social welfare departments about granted exemptions and subsidies. In any case, however, these payments shall not exceed the actual consumption.

The State Treasury will be transferring the respective funds to bank accounts.

At the same time, service providers for water supply and sewage water disposal can use these funds to pay for drinking water which they purchase for centralized supply to consumers. Also, service providers for central heating are entitled to use their funds to pay for heating energy, drinking water and water supply services purchased for the central supply of hot water.

Also, the timeline for the transfer of funds has been reduced.

“Monetization of subsidies is an effective opportunity to remove manipulations and corruption from this process. Thus, we are also enhancing state control over subsidies”, the Minister of Finance stressed.

You can mark the parts of text you like, which will be available at the link in the address bar of your browser

You can mark the parts of text you like, which will be available at the link in the address bar of your browser