When and how to monetize subsidies

The long-promised monetization of subsidies will begin on 1 January 2019, and will be held in three stages.

Коли і як будуть монетизувати субсидії

To implement this, as many believe, the communal revolution was entrusted to an interdepartmental group headed by Deputy Prime Minister Stepan kubiv. This means that the monetization of subsidies will begin in less than three months. What is known about how it will happen? And greater chances that the monetization will happen at all?

Who and when will go in stages

To ensure that the money received from the monetization did not go to the banal “eating away”, will be developed special protective mechanisms, but there will also be increased monitoring of grantees. By the way, from January to July 2018 subsidies received 2.6 million Ukrainian families – that is, the process of monetization will affect many Ukrainians, informs Rus.Media.

The Cabinet had already approved a three-phase conducting the monetization of subsidies. The first phase will begin on 1 January 2019, and will affect approximately 100-150 thousand families who apply for subsidies with the new documents. From may 1, 2019, the second phase, which will address households with subsidies, designed after the heating period. And the third stage will start in October 2019, and will be a full transition to the monetization of subsidies.

It is expected that after full monetisation and taking into account the future growth of tariffs Ukrainian family on average during the heating season, will receive 1.5 thousand UAH of subsidies per month. But the funds will have to spend at their discretion and solely on the utilities.

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Why the introduction of monetization is divided into three stages, not all at once recipients begin to monetize their subsidies? Officials suggest that to introduce monetization for all will not work, because we are not ready neither the structure of social security, or consumers, but in the end unsuccessful attempt to total monetization of subsidies may hurt the communal. After all, to implement monetization, you will need to collect additional information – credit card data of grantees to which they will transfer the funds. For this, the Cabinet needs to make adjustments to the decree on simplified procedure of granting of subsidies and to allow social protection to request information about the Bank account. During the heating season of grantees – at times more than in the offseason. So, only this will take a very long time. But this is not the main brake. More problems likely with the payment of money.

As subsidies now?

Businesses engaged in the delivery of public services, there are bills already with the discount (carry it in a separate column “Subsidy”). As a rule, the government periodically delayed the payment to public utilities for subsidies, but they still continue to collect money with regard to subsidies. But if the money and also very late will come to the accounts of recipients of subsidies, a delay will lead to the fact that these consumers will constantly have debts to the utilities. Therefore, from 1 January, decided to attach to monetize only a small part of Ukrainian families who receive subsidies. And if the experiment proves successful, then from may 1 to start the second stage of monetization. If not, then most likely the case with the monetization of the subsidies will end.

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Anyone preparing a thick sieve?

Reva said that the influence of Bank deposits on subsidies so far, with monetization a lot of unclear moments. There is no clarity to how people will be able to spend money received as subsidies. For example, if the family saved and used the service less than required by the norm? This issue is still under discussion. But in General the answer is roughly this: to spend the excess money on subsidies for utilities. But if these surpluses are significant at the end of the heating season, it is not excluded that they will be allowed to send at improving energy efficiency – installing new Windows, doors, for the purchase of individual heat points, etc.). It is possible that the money from the monetization of subsidies will be transferred to the special social card for them for nothing will be impossible to pay off, except for communal. It is also possible that the government will try a sieve for grantees to make even thicker that will help to weed out very many of them.

Most experts agree that prior to introduction of the monetization of the subsidy norms of consumption of municipal services will be reduced so that subsidies do very little for their recipients. And that’s not all.

“The main deterrent from the design of subsidies can be General register subsident, which is planning to enter, – said the President of the Ukrainian analytical center Alexander Okhrimenko. – Apply and will automatically get into the registry, giving consent for verification of all information on your accounts, deposits, property, real estate and shopping. We collect information about your relatives, even those you are not home. Assume even that will be a lot of bogus divorces. But if it helps get the subsidy? After all, the government plans to involve 10% subsident just yet about it are afraid to say out loud. This figure at this stage recommended by the IMF. And eventually will try to “cut” this group of beneficiaries to 5%. So many people will be easy to control and provide subsidies. But not it will cause other problems? After all, today people owed for communal 40 billion UAH. And if you reduce the number of recipients of grants and the debt will grow to 100 billion? Not if it paralyzes the work of enterprises providing public services?”

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Let’s hope that the most pessimistic assumptions do not come true.

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