​The order of the Ministry of Finance on the procedure for the monetization of subsidies at the level of service companies has entered into force

1/19/18

On January 19, the order of the Ministry of Finance No. 1 of January 4, 2018, entered into force. The order regulates the procedure for financial settlements carried out by the State Treasury Office as stipulated in paragraph 81 of the Procedure for the funding of the expenses of local budgets for the implementation of measures related to the execution of state programs for the social protection of citizens based on subsidies from the state budget (adopted by the decree of the Cabinet of Ministers No. 256 of March 4, 2002) and for the interaction of the participants of such financial settlements.

The decree of the Cabinet of Ministers No. 951 of November 8, 2017, on the monetization of subsidies in Ukraine at the level of service companies starting from 2018 was prepared by the Ministry of Finance, discussed with all interested parties and approved by Ukrainian and international experts.

This is the first stage of the reform of subsidy settlements – monetization of subsidies at the level of service providers. The next step will be the preparation of the system for the monetization of subsidies at the level of households.

The order of the Ministry of Finance which has entered into force today enacts the forms of the registers for the volume of the preferences and subsidies used by entitled groups of citizens for the payment of consumed energy and housing utilities. It means that all companies providing housing utilities already can capture their data in these registers to receive the respective subsidies from the state budget.

The order also contains the procedure for filling in the registers and their transfer to the State Treasury.

Additional information:

The monetization of subsidies enacts a number of innovations in the settlement of subsidies:
• Direct transfer of subsidies by the State Treasury without any protocols;
• Clear timeline for the transfer of subsidies (by the 24th day of the respective month);
• Consumers will be able to select energy suppliers and utility service providers on their own;
• The sum of transferred subsidies will be equal to the actually provided services.

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