Since 2016, the Ministry of Finance has been verifying social welfare transfers to make them targeted to concrete recipients and to ensure the effective use of budget funds.
Verification helps the state disclose individuals misusing social welfare transfers and thus secure additional funds for those who really need help.
“The check among the recipients of subsidies for housing and municipal services for January – September 2018 has disclosed that more than 68,000 citizens receive several subsidies declaring several places of residence. Another case – an individual had purchased a Mercedes for more than UAH 1.3 million and applied successfully for a subsidy amounting UAH 2,000. We have quite a number of such cases, which is a clear abuse of the system. Suspended verification would result in a higher number of cases where taxpayer’s money is abused through such manipulations,” deputy Minister of Finance Yuriy Heletiy said.
Since the beginning of the year, the Ministry of Finance has submitted approx. 7.5 million recommendations concerning the check of data declared by the recipients of subsidies. Thanks to these efforts, ineffective spending equal to UAH 5.9 billion was prevented and UAH 46.5 million were returned to the state budget.
In the course of verification, the Ministry of Finance in no way trespasses the private or family life of citizens. Presently, the Ministry is processing data received before October 11, 2018 in accordance with relevant regulations.
“We are grateful to the members of Parliament who initiated amendments to the Budget Code taking into account the recent decision of the Constitutional Court. To ensure a comprehensive settlement for the verification issue, the Ministry of Finance has already prepared the draft law “on the Verification and Monitoring of State Subsidies” and submitted it to the Cabinet of Ministers. The verification process is running, since it meets the interests of taxpayers and recipients of state subsidies,” said Yuriy Heletiy.
The Ministry of Finance is finalizing the implementation of a new automated information and analytical platform that will significantly improve the timeliness, quality and transparency of the verification process.