In the Cabinet explained why the monetization of benefits and how it will be implemented

The introduction of a monetization of social benefits in Ukraine will create for the citizens the incentives to save.

This was stated by economic expert, a member of the Strategic group of advisers to the Cabinet of Ministers Pavlo Kukhta, writes ZIK.

“Generally speaking, if you consume less than you anticipated, and can part of their grants to in the form of live media, then you are certainly going to try to consume less. That is, it is a good marketing tool, when people can calculate how much they will cost the home insulation how much they will receive further funds, if you save heat and cost effective for them it is. Accordingly, it will encourage people to take such measures that will enable them to save,” – he stressed.

According to Kuchta, now subsidies are awarded in the form of a complex system of mutual settlements between the budget, “Naftogaz” gas companies, teplogeneratsii companies when people or even these companies that provide people with heat, funds are not available.

See also:

Groisman appends a draft pension reform, which involves the growth of payments

“This system, first, such complex and complicated that there is certain manipulation and abuse. And secondly, it does not encourage people to conserve electricity. After all, our ultimate goal is to reduce energy consumption by increasing energy efficiency. And for this it is necessary that the person had the interest to minimize the consumption of energy,” he added.

At the same time Kukhta noted that the transition to the monetization of benefits is not possible in one step, as if just handing out money, people are likely just going to spend it on anything but utilities, which will lead to a debt crisis.

Therefore, according to the expert, the first means may come into some kind of personalized account of the consumer provider, and then, if the person spent less than was allocated, the remains will be transferred to his Bank account.

“But, of course, we must have individual account energy use,” said Kuchta.

See also:

In the Lviv region from April 2 to restrict the transportation of beneficiaries

Separately, he also commented on the monetization of benefits for public transport.

“Transport – this is a parish local authorities. This question should be solved individually for each city, depending on what he’s got and what resources you need transportation. For example, the situation in Kryvyi Rih, which extends over 100 km, and the situation in Lviv may slightly differ”, – said the adviser of the Cabinet, adding that it would be logical to provide such assistance “very vulnerable people” and the rest have to pay extra for extra trips.

But for the villagers, the Chairman of the Committee of economists of Ukraine Andriy Novak, the monetization of the benefits of travel can be beneficial, because they transport almost never use, so will be able to use the funds for other purposes.

“Of course, for consumers it is much more convenient, but it is an additional burden on state and local budgets. This can be a problem,” he said, adding that it is unknown, all types of benefits will be monetized.

Recall that in 2018 the Ukrainian beneficiaries will receive a cash payment from the state instead of providing benefits in kind. The experiment of monetization will hold from July 1, 2017 in the Lviv region. For 2017 it is planned to allocate for benefit programs 15 billion UAH.

Comments

comments