The government promises the monetization of subsidies, replacing these promises “election of buckwheat” – the expert

Власть обещает монетизацию субсидий, заменяя этими обещаниями «предвыборную гречку» - эксперт

The Ukrainian government promises to give people a quick monetization of subsidies using administrative resources before the elections and with this to his electorate. That is, in this case, the monetization of subsidies to replace the buckwheat that candidates often used to pack food kits for the voters.

This commentary, ГолосUA announced financial analyst, economist Alex Kush.

“This system of monetization of subsidies now finally degraded in the direction of vulgar political model to attract the electorate. In fact, the economic meanings there. This “innovative buckwheat” now. By and large, the strategists decided, why carry bags of buckwheat, or give people a bunch of negativity, different photoshopped pics, if you can apply innovative buckwheat in the form of subsidies,” – said the analyst.

A. Kusch added that it would be correct to call the monetization of subsidies, monetization of economy and communal services.

“Originally wanted to monetize grant in may to pay part of the economy of subsidies, it is not the monetization of subsidies and monetization of economy”, – he said.

The analyst also expressed the opinion that the monetization of subsidies would be useful to people that are used for heating gas. But in apartment buildings the majority of residents have no gas meters and therefore it is not clear how the savings in gas will be iterativ this case.

“Naturally, provided that 90% of subscribers in apartment buildings in Ukraine do not have gas meters, as part of the old housing stock vertical wiring heat and people can’t put individual heat meter. Accordingly, in apartment buildings the savings could receive only the homes on the water. So if we talk about the value of the idea of monetization of subsidies, it could only relate to houses that were heated with wood or don’t live at all” – said A. Kusch.

Recall, the Cabinet of Ministers intends to amend the system of monetization of housing subsidies, providing them paid in cash since March of 2019. About this RBC-Ukraine said the Minister of social policy Andrei Reva.

“There was a meeting with the President of Ukraine with the participation of the Prime Minister, several Ministers, stakeholders as “Ukrposhta”, Naftogaz, Pension Fund, public organizations, representatives of condominiums. It was a political decision that those people for whom the grant is assigned from October, to translate into monetary calculations in the form of cash since March. This is to ensure that by may to understand which mechanism is more effective. The clearing mechanism we have launched since January 1, and now are working on cash – piloted all give money and see how it will work”, – said Andriy Reva.

The Minister explained that in parallel will launch two mechanism of monetization of cash.

“Today we have 4 million recipients of subsidies, the average subsidy amounts to 1.5 thousand UAH (during the heating period, – ed.). It’s 6 billion a month we give cash,” said Reva.