The budget of the Compulsory State Social Insurance Fund, formed through the reorganization of social insurance funds used for accidents at work and occasional diseases, will amount to UAH 17.1 billion this year, of which UAH 15.1 billion will be used to pay social aid, the government press service reported.
According to the report, the fund`s revenue in 2016 will amount to UAH 17.1 billion (including balance at beginning of the year), UAH 16.2 billion of which will be received as single social security tax payments. The fund`s expenditure will amount to UAH 16.9 billion, of which UAH 15.1 billion will be spent on social aid payments.
”The funds will be allocated for the payment of material support, provision of social services and other activities provided for by the law of Ukraine `On Compulsory State Social Insurance`,” a statement read.
As UNIAN reported earlier, the Cabinet of Ministers on August 23 approved the budget of the Compulsory State Social Insurance Fund for 2016 with a view to strengthening control over budget spending.
The decision to reorganize social insurance funds by merging them was taken in November 2015 following the adoption of a relevant law by the parliament. The process, however, was delayed. The plan was to complete the procedure by early H2 2016.
In July, the Verkhovna Rada failed to get enough votes for consideration of a bill which called for a change and for acceleration of the procedure to merge those funds.
Due to flaws in the legal framework, the liquidated funds have been operating without proper control for the past 1.5 years and do not fall within the scope of public institutions management, and therefore blocking the merger process, the government noted.