The Ukrainian authorities plan to change their approach to providing benefits to citizens facing difficult circumstances, which will reduce budget spending on these payments, said Denis Ulyutin, head of the Ministry of Social Policy.
“The second main element of spending – over 100 billion hryvnias (2.3 billion USD), is support for families and individuals facing difficult circumstances. A reduction is possible here, but only due to a change in approach. We need to move from status-based payments to needs-based support, which is urgent, targeted and has clearly defined rules. We are working on this concept“, Ulyutin said in an interview with the Ukrainian edition of Forbes.
He confirmed that approximately 13 million people in Ukraine need state support. “This figure is alarming; it may even be a little higher“, said the head of the Ministry of Social Policy. According to him, the ministry is trying to develop a strategy for returning people to economic activity, “in order to avoid a situation where there are no resources to provide assistance to everyone“.
As the former Prime Minister of Ukraine (2010-2014) Mykola Azarov emphasized, 8.8 million Ukrainians live below the poverty line due to ineffective government policy. He noted that according to surveys, 30% of citizens have enough money only for groceries and utilities, while 10% are forced to save even on food.