Babak: Monetization of subsidies will make them truly effective

The other day, at a meeting of the interdepartmental working group on the preparation of proposals for the monetization of subsidies, it was announced that the government suggested a three-stage transition to the cash payments. A member of the group, MP Aliona Babak says:

“The first stage starts on January 1, 2019, for the new recipients of subsidies who will apply for subsidies with a new set of documents.

The second stage starts on May 1, 2019, when the families, to whom the subsidy is assigned and calculated for the unheated season of 2019, will join the monetization. And only on October 1, 2019, there will be the third stage. The government believes by that time it will have ensured a full transition to monetization for all households receiving benefits and subsidies.”

“However, so far we have no mechanism or monetization procedure outlined on paper, which could let us say with certainty whether or not people will be able to influence this money account. The position of Samopomich has always been as follows – a person as a recipient of social targeted assistance from the state should see on his/her own account the amount of funds that the state provides for paying utility bills and this person should be able to manage the amount of subsidies saved due to economical consumption. For example, when having 1,000 hryvnias for bills from the state, a person can save and use the rest of the sum for other purposes.

Of course, this saved money should be spent exclusively on energy saving measures or for the payment of services in the next period, or something like this. This issue should be still discussed,” stresses the deputy. “But the key thing is that the recipient of the subsidies receives the amount of money from the state on his/her account and consciously manages it. Presently, people are not interested in insulating their homes. That is, they cannot use saved money for some other purposes.”

“For the time being, I do not know whether the government plans to give people the opportunity to use account balances at their own discretion after paying bills. Therefore, we will be monitoring the proposals of the government and underscoring the things that should be changed,” concludes Aliona Babak.

The new system of subsidies should give people the motivation to rationally consume resources due to the possibility of managing the account balance. By Tuesday, October 16, the parliamentarian will submit her proposals on the mechanism of monetization of subsidies to the interdepartmental working group.

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