At the end of the previous year the Verkhovna Rada endorsed a wide range of initiatives, on which the whole team of the Ministry of Finance has been working persistently and for a long time, “Economic Truth” reports.
The decrease of tax load on salaries, decrease of rental rates for extraction of natural gas in Ukraine, introduction of verification of recipients of social aid, improving the targeting of provision of social aid, significant decrease of budget expenses (if not to consider the funding of the deficit of the Pension Fund)… - this is just a part of that work, which we did for the last year and which was endorsed by deputies.
Plans for the current year are not less ambitious. We would like to see the economic growth of our country, and the economy itself – free, with minimum state intervention into economy, however with equal, same favorable conditions for work of all companies.
For this we will work on achievement of several aims.
5 strategic tasks for the Ministry of Finance:
Our first purpose for the nearest year is the fight against corruption in all directions, for which the Ministry of Finance is responsible.
First of all, in tax and customs spheres, for what we plan to completely reform the State Fiscal Service. This is the most, but, unfortunately, complicated task for 2016.
The SFS reform is already being implemented – we have started it in last June, when we approved the two-year SFS reforming plan.
Some of the plan has been done. For example, in November 2015 the Cabinet of Ministers reduced twice the number of regional administrations of the SFS , which will significantly – almost by 17 ths – reduce the number of employees of tax authorities.
However, a lot should be done now, including:
To adopt three draft laws, which have already been submitted to the Verkhovna Rada and allow to fulfill several important steps on VAT reforming. These draft laws are 2176, 2177, 2178.
To reform the Office of Major Taxpayers. It must be staffed with best specialists, which should be hired under principle of creation of a new police, i.e. “from scratch”.
Automation of maximum number of business processes in the work of customs and tax services. Such automation requires funds – and considerable funds for acquisition of equipment and development or purchase of software.
Currently the Ministry of Finance conducts negotiations with governments of foreign states on provision of technical aid to Ukraine (not with money, but with technical equipment, software and specialists) on this matter.
The second strategic task of the Ministry of Finance is to discuss with public and deputies and to conduct the comprehensive tax reform.
The third purpose is to ensure efficient and targeted use of funds of taxpayers, further strengthening of budget discipline and decrease of the deficit of state finances. This includes:
$11) Conducting verification of recipients of social aid. The system of verification has already been implemented and we already see first valid results of this process, about which we will keep the country informed.
And we know that this norm will allow to significantly save budget funds and direct them namely to those citizens of the country, who really need support from budget.
Introduction of the zero-based budgeting approach while budgeting process.
That is, if the budget was annually drawn up as per the previous year budget, corrected for financial capacities of Ukraine, then now we plan to draw up budget “from scratch”, separately analyzing each item of budget expenditures, and taking the decision by the whole society whether budgetary funds should be spent on this item or not.
Expansion of use of portal of transparent public finances E-data.
Creation of department of assessment of fiscal risks, arising in connection with existence of state enterprises inside the Ministry of Finance.
The fourth task is the further strengthening of the banking sector of Ukraine, focusing on state banks.
For this we hope that the Verkhovna Rada will adopt legislation promptly, will introduce world best practices on the solution of problem of bad loans for enterprises as well as will impose the effective mechanism of solution of the problem of mortgage loans for borrowers, who took out such loan for acquisition of their only residential property.
This is the draft law №3555 on financial restructuring as well as the draft law on restructuring of FX mortgage loans, which we will submit to the Verkhovna Rada promptly.
We are also confident: state banks should be reliable, powerful, with a clear strategy of development and efficient management, for which we plan to submit for consideration of government and public the Strategy of Development of State Banks in the nearest time.
Finally, the fifth aim of the Ministry of Finance for 2016 is the expansion of investment resources in the country through attraction of new loan funds from our bi- and multilateral partners.
These investment resources should, first of all, be allocated for development of transport and communal infrastructure in the country.
I am sure that these reforms will become the next important stage for enhancing transparency of state finances, decreasing the role of state in the economy and its liberalization in total.
The final purpose of all these actions is the rapid and sustainable economic growth of our country, in favor of each its citizen and the whole society in total.
