First Deputy Minister of Economic Development and Trade Yuliya Kovaliv said maintaining non-transparent tariffs in Ukraine and spending budget funds to compensate for differences in tariffs would have resulted in the expansion of Naftogaz`s budget deficit.
”In 2014, UAH108 billion in budget funds was spent to cover Naftogaz`s deficit. If we had not changed this system, then in 2016, we would have spent UAH171 billion from the budget on Naftogaz. This amount exceeds the current defense budget needs,” Kovaliv stated.
The system of subsidies introduced by the government has been the only appropriate way to level off differences in rates, according to Kovaliv.
”Nothing has changed for people who are not able to pay according to the rates set. They have spent no more than 15% of their total family income [on bill payments], and they will continue to do so. Meanwhile, the amount saved [which would otherwise have been spent on covering Naftogaz`s budget deficit] reached about UAH130 billion. This amount could be spent on the army or on financing the Pension Fund`s deficit,” Kovaliv added.
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