Photo from UNIAN
At present, the government does not have the necessary financial resources to raise social standards in Ukraine, said Ukrainian Prime Minister Arseniy Yatsenyuk while reporting in parliament.
"Currently, we do not have additional resources. Due to a significant drop in oil prices, the decline in prices for Ukraine’s key export commodities, it will be very difficult to ensure the fulfillment of budget targets. If the budget execution is better than projected, the funds will be channeled to social payments," Yatsenyuk said.
He also recalled that last year Ukraine saw a record high inflation of 43%, while the government’s decision regarding the indexation of wages and pensions by 13% and 19%, respectively, did not help offset the price growth.
"What is our goal for this year? This year we need to maintain the price stability. We have set the inflation target at 12%. It’s reasonable to say that this target is linked to a dozen parameters. The first and main parameter is the currency exchange rate. And I hope that the National Bank will do its utmost to ensure the monetary and exchange rate stability," Yatsenyuk said.
The prime minister noted that to achieve this goal Ukraine has to continue the program implementation with the country’s key partners, including the International Monetary Fund. The prime minister pledged that a growing inflation would be compensated by a 12% increase in social standards [in the current year].
According to the state budget for 2016, the minimum income level will amount to UAH 1,330 ($50.26) since January 1, 2016, UAH 1,399 ($52.87) since May 1, 2016, UAH 1,496 ($56.53) since December 1, 2016. The minimum monthly wage will amount to UAH 1,378 ($52.07) from January 1, 2016, corresponding to the current level of the minimum wage. In May 2016, the minimum wage will be increased to UAH 1,450 ($54.79), and in December to UAH 1,550 ($58.57).