The state budget 2021 draft bill lacks the most important part of it, which is fight against poverty. This was stated by OPPOSITION PLATFORM – FOR LIFE MP Serhiy Lovochkin commenting on the draft bill that the Cabinet has introduced to the parliament.
“The subsistence rate set in the budget 2021 will still be two times lower that the real cost of living as calculated by the Social Policy Ministry based on consumer basket and inflation rate. This means that millions of the poorest citizens will have no money for the bare essentials,” the politician said.
Lovochkin added that effective Jan. 1, 2021 subsistence rate is set at 2,189 hryvnia, increased up to 2,393 hryvnia by the end of that year. At the same time, this summer the real cost of living amounted to 3,895 hryvnia and will reach over 4,000 hryvnia in early 2021 (with inflation rate accounted) and 4,300 hryvnia by the end of that year.
“It’s been seven years in a row that the government keeps the twofold gap between the real cost of living and its figure as planned in the budget and used for most of social benefits calculations. This means that the level of absolute poverty does not change, and Ukraine remains one of the poorest countries in Europe. Retirees who are paid minimum pensions and families with children remain the most vulnerable categories,” the MP explained.
“OPPOSITION PLATFORM – FOR LIFE has stated many times that continuing the socioeconomic agenda of the previous administration is leading Ukraine to a catastrophe. We demand that the subsistence rate in draft bill of state budget 2021 is increased to reach the real cost of living,” Lovochkin said.Follow @serhiylovochkin