Following the proposal of the Ministry of Finance, the Government shall increase the effectiveness of the use of public funds

3/30/16

Following the proposal of the Ministry of Finance, the Government will increase the effectiveness of the use of public funds allocated for public bodies, other public authorities and state-owned companies. The Cabinet of Ministers has adopted the corresponding decree today.

The Ministry of Finance is actively working to increase the effectiveness and rationality of the use of taxpayers’ money and, accordingly, the quality of public services and volume of social welfare for those who are really in need.

The above decree contains a list of steps to achieve this target. It shall help reduce expenses which do not belong to the core tasks of the respective public bodies and do not influence the quality of their operation. The Government’s new decree prohibits public bodies and state-owned companies to purchase uniforms, pay for charter flights and the official use of more than one car. It also prohibits using public funds to compensate a part of the meal costs for the employees as well as to celebrate memorable and historical dates, anniversaries and other events.

Also, for the effective use of insurance contributions paid by the citizens of Ukraine the decree sets limits for expenses for the organization of the operations of social funds (organizational and management costs, capital investments).

At the same time, the above decree – within the limits set for the funding of public bodies – makes it significantly simpler to allocate funds to improve material and technical supply for public bodies, thus increasing their efficiency and motivating their employees. It gives more freedom in using the allocated budget funds set by the previous decree No. 65 dated March 1, 2014, and lifts the ban on the purchase of furniture, household appliances as well as repairing works, additional payments for replacing temporary absentees, hiring employees for vacant positions etc.

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