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From communal debts to subsidies: what are the challenges facing the Ukrainian social sphere?

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Македон Олександр
Lawyer
Ukraine / Kyiv

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Publication date: 18.03.2024

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The Ukrainian social sphere is facing complex conditions accompanied by various challenges. One of the biggest challenges is the issue of pension and benefit payments, as well as debts to utilities and the allocation of subsidies. These issues are an integral part of Ukraine's social sphere because without addressing them, it is impossible to talk about ensuring a decent life for all citizens.

 

One of the main issues in the social sphere is pension payments. Ukraine has one of the lowest average pensions in Europe, approximately 4,500 hryvnias per month. This significantly differs from the average pensions in many other countries, where they amount to over 500 euros per month. Additionally, the number of individuals eligible for pensions increases annually, leading to a significant increase in budget expenditures for these needs.

 

Another important aspect in the social sphere is the provision of benefits. Ukraine has a significant number of categories of citizens entitled to certain benefits, such as medical treatment, free public transportation, free medication, births of child and so on. These benefits constitute a significant portion of the state budget, creating financial pressure on the state treasury.

 

One of the greatest challenges is the debts to utilities. The Ukrainian social sphere has significant debts to housing and communal enterprises, arising from various reasons such as ineffective management of housing and communal services, insufficient payment for these services by the population, lack of state funding, and so on. These debts create serious financial pressure on the budgets of cities and villages, complicating the development of social infrastructure in these regions.

 

To reduce the financial pressure on city and village budgets and to support the population, the Ukrainian government is implementing various measures, such as the allocation of subsidies. Subsidies are financial assistance from the government to support the population in paying for housing and communal services and energy resources. These measures help maintain an adequate standard of living for certain categories of the population facing difficult life circumstances.

 

However, the allocation of subsidies can also become a problem as there is a risk of their misuse. For example, some individuals may use subsidies to pay for other bills or even sell them. This can lead to deviations from the main purpose of subsidies and difficulties in implementing government plans.

 

The Ukrainian government is constantly seeking ways to address these problems. For example, one strategy could be to improve the pension and benefit payment system. Mechanisms optimizing the control of subsidy usage could also be introduced. Various technologies, such as electronic monitoring and analysis systems of population expenditures, control trips, monitoring of electricity and other energy resource consumption, could be used for this purpose.

 

Furthermore, to address the issue of debts to utilities, the government may attract investments from private investors, stimulating enterprises to improve their efficiency and reduce debts. The government can also support reform in housing and communal services aimed at providing quality services and efficient management.

 

An important task is also to increase the level of education and information literacy among the population, which will help ensure the effective use of subsidies and prevent misuse of funds. It is also important to ensure the proper allocation of subsidies, which can be done through the creation of a transparent and accessible system for assessing the income and expenditures of the population.

 

The Ukrainian government has significant potential to address issues in the social sphere and reduce financial pressure on city and village budgets. To achieve this, effective cooperation between various agencies is necessary, and the results of measures implementation should be regularly assessed. It is also necessary to ensure the availability of information about government actions and opportunities for the population to receive subsidies and other benefits. Only in this way can a proper level of social support for citizens be ensured and the stable development of the country be provided.

 

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