Finance Minister: No Direct Pensions From State Budget

The Ministry of Finance opposes eliminating unified social tax and paying pensions directly from the state budget, Minister Oleksandr Danyliuk told DT.UA.

"The logic behind this proposal is as follows: whereas the Pension Fund budget gap is over 50%, the state budget already provides funds for pensions. But we would rather opt out for stabilization of pay as you go (PAYG) pension system and the Pension Fund," he highlighted.

"If pensions are paid directly from the state budget, we won’t get full account of them and won’t be able to notice shortfalls, if any. Stabilization of the Pension Fund is a better way to provide social security," the Minister stressed.

"We have to balance the Pension Fund’s books. For instance, we have some expenses that are unusual for a pension system – they should be eliminated," Danyliuk noted.

Source: Ekonomichna Pravda