Ukrainian government intends to cut pensions

Ukrainian government intends in cut pensions by half already in March aiming to optimise the budget expenditures, informs “Kommersant-Ukraine” citing the draft project of the Ministry of Finance available to the publication.

According to the document, serious spending cuts will be made mainly in social sphere. The government plans include sequestration of 2014 budget (scheduled for the end of March) - earlier the Cabinet promised to cut the costs by UAH 65-80 billion ($6.8-8.4 billion).

“The Ministry of Finance has prepared a plan to optimise budget expenditures that will serve as a base for budget sequestration. In particular, the draft offers reduction of capital outlays, cancellation of tax benefits and incentives and reduction of social benefits, for example, by 50% for working pensioners,” the newspaper writes.

Earlier new Ukrainian authorities have repeatedly stated the difficult economic situation of the country. In particular, Prime Minister of the interim government Yatsenyuk said that the state coffers are empty and public spending has not been paid for a few weeks.

According to the Ministry of Social Policy, on December 1, 2013, the average pension in Ukraine was about $160.

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