On November 14, the Parliament made an important step towards the state budget 2018 passing by supporting the bill in the first reading, Ukrainian MP Oleksandr Feldman notes.
— First of all, the very fact of voting for the budget in autumn is good, as there were even cases in the history of Ukraine, when the country saw the New Year in without this vital document. The bill caused violent disputes among the MPs, but I think that the arguments ‘for’ are more weighty than the arguments ‘against.’
First, it provides for the increase in incomes up to ₴877 billion, which is 13.7% more than in the budget 2017. Thanks to this, it is made possible to increase the minimum wages up to ₴3,723 – by 16.3 percent in comparison with the current minimum wages. One may say that a €500 increase is not an increase given the current rise in prices. However, it should be noted that the prices will go up even without the law passing, and millions of our citizens, who will definitely feel this increase, expect the Parliament to make a positive decision. In this sense, the failure to vote ‘for’ is a socially irresponsible step regarding the most low-income workers in Ukraine.
Second, local budgets continue to increase. And it should be noted that this increase is ensured by the increase of own incomes (by 36 percent), and not by the subventions and grants from the centre. Of course, the expenditures, which are shifted on the local level, will also increase, however, it is important to make all changes well-balanced based on the principle of “more money – more responsibility.”
Third, in comparison with the budget 2017, much more money will go to education and medicine funding – ₴217.5 and ₴112.5 billion respectively. It is expected that the salary of educators will see a ₴1,500 increase on average, and it is really an investment into the future of the state, which directly depends on the motivation of pedagogues and the social status of their profession. The special attention should be paid to a 23 percent increase of budgetary expenditures on science.
In conclusion, I would like to note another aspect. For me, as a MP from Kharkiv, it is very important that the interests of our region were taken into account. In particular, the budget provides for the state guarantees of attracting €320 million of credit funds for the construction of new underground stations in Kharkiv. The other example is the fact that ₴2 billion will go to the major repair of the Kyiv-Kharkiv-Dovzhanske road. It is an unprecedentedly huge sum. It is the expenditures of development rather than consumption. And it directly concerns the residents of Kharkiv oblast.
However, it should be also noted that the bill has the range of significant defects, which must be removed before the second reading. For example, the increase of reverse subsidy from 50 percent to 80 percent is a mechanism of “horizontal balancing” of the local budgets, which conflicts with the course of decentralization and is unfavourable for Kharkiv. But we still have time to finalize the document, and I expect that Kharkiv MPs from all groups will continue to actively work on the protection of the interests of our region.
