Minister of Finance Natalie Jaresko: «We propose a number of structure reforms meant to increase the effectiveness of public spending»

12/16/15

«We propose a number of structure reforms meant to increase the effectiveness of public spending and thus to save costs and to improve the quality of public services», Minister of Finance Natalie Jaresko said in a press conference at the Cabinet of Ministers.

She also reported that her Ministry proposes to make budget spending more effective and targeted, which should contribute to more fairness and transparency in the social welfare system. To achieve this, the Ministry of Finance intends to carry out a verification of the social welfare recipients to detect “ghost recipients” and cases of incompliance with the respective criteria to receive social aid. This verification is expected to save UAH 5 b in public costs. The launch of a comprehensive electronic procurement system is expected to save further at least UAH 2.5 b for the state budget. This system has already proven to be very effective.


According to Natalie Jaresko, the Ministry of Finance also proposes to implement economic incentives to significantly improve the quality of public services in the humanitarian area. For example, the education system should be streamlined by merging educational facilities, in order to improve the educational process as well as to improve the efficiency and quality of education services.

«Today, 373 schools with less than 10 children operate in Ukraine – these are schools with a low occupancy rate resulting in higher costsper student and, at the same time, in a much lower education quality. What quality of education can we talk about regarding these schools where one teacher is in charge for all disciplines and all age groups? That is why our Government proposes to put such schools together to establish better equipped schools in district capitals or in major villages where parents could send their children by a regular dedicated bus», the Minister of Finance said.

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