Deputy Minister of Finance Roman Kachur explains opportunities to improve the distribution of subsidies for municipal utilities

5/26/16

Deputy Minister of Finance Roman Kachur told about opportunities to improve the distribution mechanism for the subsidies for municipal utilities during a discussion meeting which took place at the Ukrainian Crisis Media Center. The discussion was also attended by MP Olga Belkova, Head of the Board of “Naftogaz of Ukraine” Andriy Kobolev, First Deputy Minister for Economic Development and Trade Yuliya Kovaliv, senior economist of the Center for Economic Strategy Marta Kuzmyn and deputy head of the Strategic Advisors’ Group at the Cabinet of Ministers of Ukraine Pavlo Kukhta.

According to Deputy Minister of Finance Roman Kachur, the Ministry of Finance is already implementing a reform in the public finance system which makes it possible to pay all subsidies in full.

“Presently, we do not have any systemic problems regarding the payment of subsidies. Last year, the subsidy program was financed in full which is equal to 18 billion hryvnas. In 2016, 40.3 billion hryvnas were allotted for subsidies taking into account the latest amendments to the state budget. Currently, we pay subsidies in full scope as well”, Deputy Minister of Finance Roman Kachur said.

Roman Kachur named three core areas which the next steps of the Ministry of Finance in regard to the improvement of the subsidies’ effectiveness are focused on:
- competition and transparency on the energy market are to be upgraded after the implementation of the market-based gas prices;
- clear energy-saving incentives must be implemented for citizens, since energy saving poses the most efficient investment opportunity in financial terms;
- subsidies must be better targeted to provide aid to those who are really in need

Also, according to the Deputy Minister of Finance, the system of granting subsidies must be simple and fast for recipients.

”We must not make the life of subsidy recipients more complicated. We must set a minimal volume of paperwork and a minimal number of procedures, in order to make the distribution of subsidies as simple as possible for our citizens”, Roman Kachur emphasized.

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