REUTERS
A total of UAH 12 billion in budget funds is needed to increase wages and pensions in Ukraine in line with the Consumer Price Index (CPI), which is called "indexation," Ukrainian Prime Minister Arseniy Yatsenyuk said at a Social Policy Ministry meeting on Monday.
"We must carry out indexation in accordance with the adopted law starting from December 1. It is in my interest as prime minister to find funds for the indexation... According to various estimates, about UAH 12 billion will be required additionally for the indexation," he said.
According to the prime minister, these funds can be obtained through the elimination of the shadow economy and "tax loopholes," prevention of VAT-related fraud, and an increase in revenues from customs duties.
The prime minister recalled that the Defense Ministry received additional UAH 5.2 billion last week due to a reduction in spending on other government agencies.
As UNIAN reported earlier, on May 18, 2015, Yatsenyuk announced that the government was ready to discuss plan with the parliamentary coalition on the indexation of citizens’ incomes.
He recalled that the coalition suggested launching the indexation as of December 1, 2015.
"We are ready for such indexation. I am the first one who is interested to schedule indexation for an earlier period, but we should find the resources for this. And then, as the parliament speaker said, we would meet together with the Finance Ministry, the Social Policy Ministry and relevant committees and would declare openly whether there are resources for the indexation of citizens' cash incomes," the prime minister said.
On June 7, Finance Minister Natalie Jaresko said the state had no funds for indexing social benefits and wages.
"There is no money for this. I would like to index social payments as soon as possible, as we understand the importance of supporting our citizens. But there is no real budget surplus. If there is any increase in revenues owing to de-shadowing, elimination of "tax loopholes" and smuggling, or by means of any other resources not being considered now, I am ready to review social payments," Jaresko said.
At the same time, she noted that the ministry intended to carry out the indexation of salaries and pensions as soon as possible.