​President of Ukraine signs law from budget package for 2019 allowing retrieval of personal data for verification of social welfare payments

12/27/18

President of Ukraine Petro Poroshenko has signed the law on amendments to the Budget Code that makes it possible to retrieve personal data for the verification and monitoring of social welfare payments (draft law No. 9084).

The law shall settle issues concerning the verification and monitoring of social welfare payments taking into account the decision of the Constitutional Court of Ukraine.

According to the decision of the Constitutional Court of Ukraine, since October 11, 2018 the Ministry of Finance has not been entitled to receive new data from registers to re-check information provided by recipients of social welfare payments concerning its compliance with the criteria set by law. The estimated unauthorized payments for this period are equal to more than UAH 171 million.

The adopted amendments to the Budget Code (new version of paragraph 40 of section VI “Final and Transitional Provisions”) regulate legal and organizational principles for the verification and monitoring of pensions, state aid, exemptions, subsidies and other social welfare payments provided from the state budget.

To ensure social welfare payments dedicated to concrete recipients and to prevent their misuse, the Ministry of Finance continues to receive and to process personal data. It is also entitled to have access to automated information and enquiry systems or registers owned (administered) by state bodies or by local self-government bodies.

Since the beginning of this year, the Ministry of Finance has issued 7.5 million recommendations concerning 6 million social welfare recipients. Thanks to the verification conducted in 2017 and 2018, the state prevented the misuse of at least UAH 14 billion.

As a comprehensive solution for the verification measures, the Ministry of Finance prepared the draft law “On the Verification and Monitoring of Social Welfare Payments” and presented it to the Government.

“Verification of social welfare payments shall ensure that aid provided from the state budget reaches those who really need it. State budget funds must be used in an effective and transparent way, state aid must be dedicated to concrete citizens. That is why, verification serves the interests of all citizens who really need help as well as the interests of all diligent tax payers,” said Deputy Minister of Finance Yuriy Dzhyhyr.

The Ministry of Finance expects the Government and the Parliament to approve the draft law “On the Verification and Monitoring of Social Welfare Payments” that will contribute to the build-up of a fair social welfare system, will make social welfare payments more targeted and optimize budget spending.

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