On October 11, the Constitutional Court of Ukraine issued a ruling stating that some of the regulations in the Budget Code of Ukraine entitling the Ministry of Finance to obtain information containing personal data violate the Constitution of Ukraine. The Ministry of Finance respects the ruling of the Constitutional Court and commits itself to the rule of law. It will follow this ruling in full.
However, it does not affect the verification process, since the data about the recipients of state support are anonymized. Information which is analyzed and compared by the Ministry of Finance comes from automated systems, registers and databases. Processing this information, the Ministry of Finance in no way trespasses the personal and family life of citizens.
“The verification of welfare transfers is aimed to ensure that this aid from the state budget really reaches out to those who do need it. State budget funds must be spent in an effective and transparent way, state aid must have clearly defined recipients. This serves the interests of our citizens who really need this help from the state as well as all diligent taxpayers. The economic prosperity of citizens is actually the legitimate goal pursued by the Ministry of Finance through the verification of subsidies,” acting Minister of Finance Oksana Markarova said.
The Ministry of Finance has prepared the draft Law of Ukraine “On the Verification and Monitoring of Public Transfers” and submitted it to the Cabinet of Ministers for examination. This law is designed to determine the main legal and organizational principles of the verification as well as to remove points of concern for the Constitutional Court.
The Ministry of Finance is entitled to control compliance with the budget regulations concerning the monitoring of pensions, state aid, exemptions, subsidies and other welfare transfers. The Ministry’s powers in this area are set by the Budget Code of Ukraine, the Constitution of Ukraine, the Laws of Ukraine “On Personal Data Protection”, “On Information Protection in Information and Telecommunication Systems”, “On Banks and Banking” as well as by other legal regulations. The only aim of these powers is to contribute to economic prosperity and human rights.
The verification mechanism is set by the Decree of the Cabinet of Ministers No. 136 of 18.02.2016 “On the Approval of the Procedure for the Verification and Monitoring of Information provided by Citizens for Calculation and Approval of Welfare Payments, Preferences, Subsidies, Pensions, Salaries and other Payments made from the State Budget and Local Budgets, by the State Pension Fund and Mandatory State Social Insurance Funds”.
Part 2 of article 32 of the Constitution of Ukraine reads as follows: “Collection, storage, use and dissemination of confidential information about a citizen without her or his consent are prohibited, except for the cases set by law and serving the interests of national security, economic prosperity and human rights”.