"Next year, we plan to increase the minimum wage and the living wage by 12.5 percent in two stages, on May 1 and on Dec. 1," Jaresko said.
According to her, from May 1, the minimum wage will account for UAH 1,450 (approx. $61.65), which is UAH 72 as much as the current amount, and from Dec. 1 - UAH 1,550 (approx. $66), which is UAH 100 as much as the planned increase in May.
Jaresko also said that budget expenditures in 2016 would increase by UAH 43 billion (approx. $1.82 billion) due to the growth of social standards . At the same time, the minister noted that the government planned to save about UAH 70 billion (approx. $2.97 billion), which is 3.1 percent of GDP, by improving efficiency and targeting of state social spending. According to Jaresko, the mechanism for this goal is stipulated by the draft law No. 3628 on amendments to certain legislative acts of Ukraine (regarding stabilization of the financial condition of the state and improvement of certain provisions of social policy).
The budget, according to the minister, also provides for the increase in amounts of subsidies. Costs to cover the increase in tariffs for the population will grow in 2016 to UAH 35 billion (approx. $1.48 billion) from UAH 24.4 billion this year. Subventions to local budgets to help low-income families, the disabled, etc. will increase by UAH 2.4 billion (approx. $1.02 billion). Social assistance to parents and foster parents will rise to UAH 800 million (approx. $34.01 million) from UAH 600 million this year.
As reported, the Ministry of Finance has published a draft state budget for 2016 and a draft tax reform.