Another term of Ukraine’s receipt of a loan from the IMF is coming up, and again the issue of reforming the pension system is becoming topical on the agenda.
Let’s not talk for a long time about the fact that there are demographic problems in Ukraine such as reduction in the workforce (Westerners migrate to Europe in search of a better life), the aging of the population. Moreover, according to statistics, the ratio of pension contributions payers and pensioners is approximately one to one.
It’s worth remembering about the shadow economy, when employees work simply off-the-books, or contributions are made from a minimum wage. All these schemes have long been known.
And a remarkable ‘improvement’ with a reduction in the rate of the unified social tax (UST) in 2016 not only did not improve, but, on the contrary, exacerbated the situation. The essence is that transfers from the Ukrainian budget to cover the deficit of the pension fund amounted to 140 billion hryvnia, or 6% of the country’s GDP.
And now, the head of the International Monetary Fund’s mission in Ukraine, Ron van Rooden, already strongly criticizes the pension reform (in fact, because of its non-fulfillment) and proposes to reduce enterprises that do not pay UST: “It is necessary to adjust the simplified taxation regime for small enterprises, which creates great opportunities for evasion from paying UST and taxes.”
Also, in Ukraine, it is proposed to increase the retirement age or reduce the possibility of early retirement.
One thing is clear: for the opportunity to rend a piece off a treasured pie in the form of an IMF tranche, the government of Ukraine can do anything. Apparently, in this case, the end justifies the means.
It’s no secret that now our pensioners in an unequal struggle with the Kiev regime, which is carrying out an economic genocide, are trying to get hard earned pension payments.
At that, the authorities of the People’s Republics not only fulfill all social obligations to their citizens, but also thanks to the Humanitarian Programme for the reunification of the Donbass people are helping residents of territories under the temporary control of Ukraine.
Marina Zheynova, the DPR People’s Council deputy