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Arseniy Yatsenyuk: On December 9 the Government will submit the agreed bills on state budget and tax reform to Parliament
07.12.2015 | 11:33

"On Tuesday it is scheduled a meeting of the National Reform Council, during it we must reach mutual agreement both regarding the Tax Code and the draft law of Ukraine on the state budget. And aftermath, on Wednesday, the Government of Ukraine, on our mutual accord, will adopt relevant legislation and submit it to the Ukrainian Parliament", said Prime Minister of Ukraine Arseniy Yatsenyuk in 10 minutes programme on Sunday, December 6.

The Head of Government stressed the need "to find a compromise within the Ukrainian Parliament": "I urge members of the Parliament to be ready to hold a dialogue, aimed to ensure the growth of the Ukrainian economy, creating new jobs, increasing revenues to the budget, supplementing incomes of the citizens and boosting economic activity in the country and drawing foreign investment".

Arseniy Yatsenyuk reminded that during the fiscal year the Government had managed to surpass the revenues of the state budget by over 30%: "The revenues of local budgets grow the same way – over-fulfillment makes up almost 40%".

"As a result, we could have fully financed the Ukrainian Armed Forces. We have paid all the pensions and wages. We have fulfilled all our social obligations. And we are ready to prolong this path in 2016", stressed the Head of Government.

According to the PM, the law of Ukraine on the state budget for 2016, first of all, should contain increasing welfare standards: "This September we raised social standards by 13 and 19%, respectively. Despite the fact that the inflation rate was quite high. We were unable to completely compensate for the loss of the Ukrainian families from rising prices. But next year we plan the level of income growth 12%. And this is the figure that is viewed by us to fully reimburse for the growth of prices and tariffs in 2016".

Among the key budget priorities Arseniy Yatsenyuk views the financing of the Ukrainian army: "We offer to raise funding of the Ukrainian armed forces by 10 billion hryvnia. This year it amounted UAH 90 billion, the next year we plan it UAH 100 billion".

Of topmost importance are also considered social justice and social benefits: "All basic welfare benefits will remain. For the disabled and for veterans, and Chernobyl victims, as well as payments for child birth will be prolonged in 2016".

The Government also views it necessary to continue the process of budget decentralization. Arseniy Yatsenyuk reminded that this year, fiscal decentralization had enabled local budgets to obtain significant funding: "This is billions of hryvnia, which they should spend on schools, hospitals, infrastructure, roads – on making life of every township better".

"The policy regarding the state budget for next year is similar. We expect that local revenues will further grow by 30 billion UAH next year, which will allow your child to attend a better school, each one of you to visit the best hospital, and all of us to walk along smooth well-lit streets", said the Head of the Government to citizens.

Arseniy Yatsenyuk reaffirmed the subsidy program would prolong the following year. This year, he reminded, the Government has allocated UAH 24.5 billion for subsidies for the citizens: "Presently, 5 million of Ukrainian households, it makes up almost 15 million citizens of the country, have applied and receive subsidies from the state."

"Next year we plan to increase financing subsidies up to UAH 38 billion. To ensure that anyone who needs help of the state as a result of the introduction of market prices and tariffs for energy resources, could receive such assistance".

Apart from that the next year the Government intends to allot almost UAH 7 billion on capital development: "That is the funds to be transferred to the regions to build new hospitals, renovate schools, restore theatres and enable regions to build its infrastructure".

Arseniy Yatsenyuk stressed that the law of Ukraine on the State Budget should be adopted simultaneously with the new Tax Code: "The Ministry of Finance of Ukraine offered a well-structured and effective tax reform as a good basis to approve, which, on the one hand, shall reduce the tax burden on the employee, and on the other - shall release an additional resource for enterprises".

The tax reform, emphasized Arseniy Yatsenyuk, is aimed at reducing the burden on salary payments, introducing a transparent and honest program to reimburse value added tax, the elimination of the tax police and its demilitarization, the establishment of Financial Investigations Service: "This is introduction of electronic offices of taxpayers. And this is a simplified tax system for those entities that represent small and medium-sized businesses and the middle class in Ukraine".


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