The Bank plans to raise taxes to ensure the growth of pensions

Controller analysts believe that the tax payments in Ukraine should be increased by 14% to ensure indexation of pension payments.

У Нацбанку планують підвищити податки для забезпечення зростання пенсій

The increase in the cost of financing the Pension Fund in 2019 for a total amount of 17,4 billion hryvnias (up to 167,5 billion) can cause the rise of certain types of taxes. Costs PFCs due to represented in the government by the increase of pensions, informs Rus.Media.

This was reported in the inflation report National Bank of Ukraine.

According to analysts ‘ estimates of the NBU to ensure the indexation of pensions the government should increase tax revenues by 14.2% compared to 2018.

Also, the regulator reminded of borrowing Pension Fund last year, which amounted to 4.8 billion UAH.

“This is due to planned indexation of pensions, and a strained budget of the Pension Fund in 2018. During the year the Fund received loans from the unified Treasury account to cover the liquidity gaps, the outstanding loans amounted to UAH 4.8 billion at the end of 2018,” – noted in the NBU.

The national Bank also remembered and incorporated in the estimate for 2019 “restrained” growth of incomes of the state budget does not allow to conduct large-scale social reform. Thus, in accordance with government documents, and expected growth of expenditure, which complicates the situation with the economy.

“The state budget for 2019 is developed based on a rather conservative macroeconomic forecast. This was evident in the modest growth of revenues and expenditures compared to actual performance 2018 (10.6% and 12.8%, respectively),” said the regulator.

The report also mentions the reduction of budget expenditures on housing subsidies to 55.1 billion, 20 billion of which will be paid in cash on account subsident. The NBU analysts support this kind of social policy of the government, which makes social assistance a more personalized and point.

16 January 2019 in the Verkhovna Rada of Ukraine approved the budget of the Pension Fund of Ukraine. According to them, in 2019, the revenues of the Pension Fund must exceed the costs. The planned Fund balances at end of year – more than 400 million hryvnia. Own revenues PFCs are planned at 230,6 billion hryvnia from the state budget for financial support for pensions increases to pensions and repayment of deficit PFCs provided 167,5 billion.

Expenditures of the state budget to Finance the payment of pensions, allowances and increases to pensions – 114,4 billion. The planned balances of the pension Fund by the end of the year is about 444 million USD.