Social benefits and financial support to children will be reduced

The Cabinet of Ministers of Ukraine has introduced a draft law On Government Budget of Ukraine for 2014 to the Verkhovna Rada, Vesti  (Вести) says.

With a new law, the Cabinet of Ministers of Ukraine proposes cuts coming to the budget, namely to reduce the budget by 23,5 bln hryvnias — up to 371,8 bln hryvnias, with common fund lessened by 31,5 bln hryvnias (up to 313,8 bln hryvnias). Meantime, public spendings will lower by 26,6 bln hryvnias (up to 435,6 bln hryvnias), common fund — by 31,56 bln hryvnias (up to 376,5 bln hryvnias).

The budget gap will be reduced by 3 bln hryvnias amounting to 68,564 bln hryvnias, while the common fund remains unchanged — 62,56 bln hryvnias. Concurrently, the sovereign debt is estimated to increase by 13,4% (by 78,5 bln hryvnias). It will be fixed at 664,01 bln hryvnias

After increase reported in January, the Cabinet of Ministers of Ukraine is going to revise the standards on social security, since November the1st. The growth will make up 2,6% — from 1218 hryvnias up to 1250 hryvnias. It is worth noting that rise in social pays since July1 has been budgeted, and then the minimum wage and cost of living would have increased by October by 51 hryvnias more - to be equal to 1301 hryvnias. Since November the minimum pension will amount to 974 hryvnias, instead of estimated 1014 hryvnias.

Budget cuts will be made to social security benefits paid to the disabled children, despite of earlier augmentation that has been proposed — this depends on the minimum cost of living for incapacitated. The financial support paid upon the birth of a child will be also frozen:

The amount of accruals will not exceed 31 ths hryvnias irrespective of what child it is (as compared with123 ths hryvnias before, for example, the third child pay). The first disbursement amounts to 10 ths hryvnias, while all the others will be paid within two years.

To fill the budget, the Yatsenyuk’s government is planning to impose new taxes and duties.  So, a new duty of 0,5% will be levied on currency exchange, excise duties on alcohol and tobacco products will be also increased, the interest income from savings and deposits over 100 ths hryvnias will be levied, too.