Social Ministry plans subsidy system transformation in 2017

Vice Prime Minister Pavlo Rozenko says the national subsidy system introduced by the government in 2015 has achieved its main objectives, and therefore it must be transformed as early as in 2017.
”The system of subsidies has fulfilled its main task set for 2015-2016. The size of a subsidy at the peak of the heating season reached about UAH 1,400 UAH. This means that every low-income family has received UAH 1,400 as a compensation for higher prices,” Rozenko said.
”But the system of subsidies is not a constant. It has a limited duration. It can prove to be efficient at peak periods of energy price growth. Later, it will be transformed … starting from 2017. It is already undergoing changes,” Rozenko said.
He also emphasized the need to carry out monetization of subsidies.
”The government is ready [for the task], we are developing mechanisms,” Rozenko said promising new ways to tackle this issue by the end of the next heating season.
As UNIAN reported earlier, in January-May 2016, the amount of subsidies allocated for Ukrainian households to cover housing and utility expenses totaled UAH 2.3 billion, having grown tenfold from 2015.
The Social Policy Ministry projects that the number of households in need of state subsidies will grow in the current year from 5.5 million people to 8.9 million people in the aftermath of the decision made by the Ukrainian government to introduce a single gas price for all categories of consumers starting from May 1.

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