Closing offshore flows will guarantee higher social benefits

11:09 01.10.2019

Batkivshchyna leader Yulia Tymoshenko has called on deputies to approve her party’s deoffshorization draft bills that would allow social payments to be financed in the 2020 budget at a level not lower than the actual subsistence minimum.

“Let’s ask the parliament to immediately adopt the laws on deoffshorization – №1179 and №1181. They will completely close all offshore circulation,” Yulia Tymoshenko said during discussion of proposals on the draft 2020 State Budget by the Verkhovna Rada Committee on Social Policy and Protection of Veterans’ Rights.

The politician stressed that all social benefits – minimum pensions and wages – should be calculated in the budget for next year based on the actual subsistence minimum.

She recalled that in the budget for this year, which was submitted by the Groysman government, “minimum wages and pensions are financed at only half the real subsistence minimum,” and called on the new government not to repeat the mistakes of their predecessors.

Yulia Tymoshenko believes that the next step should be the adjustment of salaries for state employees in accordance with a proper tariff scale.

“Again the tariff scale is not being calculated based on the minimum subsistence level, which should be equal to the minimum wage. It is again an artificial indicator that completely distorts the qualification of people’s work. A head doctor’s salary will be no different than that of a cleaner. The bottom of the tariff scale, at least for state employees, should be calculated starting from the minimum subsistence level according to a methodology that should be equal to the minimum wage,” she said.

The Batkivshchyna leader proposes finding the resources to raise social standards through the adoption of laws on the deshadowization and deoffshorization of the economy, stopping smuggling and bringing order with taxes.

“This will significantly increase the revenue side of the budget and, as a result, increase social expenditures – pensions, salaries and assistance for people with disabilities and low income families,” she said, adding that deoffshorization would bring about 70 billion hryvnias to the budget in the first year, while removing at least 50% of the economy from the shadow will bring more than 250 billion hryvnias.