The Parliament adopts amendments to the State Budget paving the way for the increase of subsidies and speeding up the upgrade of social welfare standards

5/20/16

The Parliament has approved a draft law on amendments to the Law of Ukraine “On the State Budget for 2016” (concerning social welfare standards and subsidies for social welfare and utility tariffs) which was proposed by the Government. According to these amendments, the subsidies for social welfare and utility tariffs should be increase, the upgrade of social welfare standards should be implemented faster. This step refers to the previous decision of the Government setting market prices for gas and increasing the energy tariffs for households accordingly.

According to the adopted Law, the subsidies for social welfare and utility tariffs shall be increased by 5.3 billion hryvnas. Thus, households will receive the aid they need. At the same time, the Ministry of Finance, jointly with other ministries, will be taking further steps to make these subsidies targeted and to implement the energy-efficiency program.

Also, starting from December 1, 2016, the social welfare standards will be increased by 10% instead of the 7% originally planned in the current Law on the State Budget for 2016. This includes the faster increase of the living wage and the minimum salary – the minimum salary is set to be increased from 1378 hryvnas in January 2016 to 1600 hryvnas in December 2016.

This step has become possible due to the increase of the state budget revenues by 6.7 billion hryvnas which is mainly based on higher tax revenues received from JSC “Ukrgasvydobuvannya”. They refer to the implementation of the market price for gas extracted by “Ukrgasvydobuvannya” starting from May 1, 2016.

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