In early 2016, the authorities promised the Ukrainians that will drop the “paper curtain” and the citizens will travel to EU without visas, will host a major fight against corruption, and trade with the EU will compensate for the loss of the Russian market. In 2016, the country came close to these goals, but none of the promises have not come true. Bezviz Ukrainians never received, though not through the fault of Ukraine, and due to the delay in the EU. A large-scale fight against corruption is mainly down to the introduction of e-Declaration, and the exports to the EU, though increased, but not enough to provide an increase in foreign trade in General. Fully failed to implement the government action plan for 2016. Just launched a new law on civil service as an element of improving the quality of public administration, in December, passed laws aimed at improving the business environment and tax administration. But with macroeconomic stabilization and the fight against corruption (which also contains the plans of the Cabinet) had difficulties. “Segodnia” analyzed, some key reforms failed to realize in 2016 and what will have to “sweat” in 2017.
“Reform of happiness” could further drive the business into the shadows
The last three months of the expiring 2016 the Verkhovna Rada, the Cabinet and the presidential Administration’s main reform considered the adoption of the budget for the following year. Individual MPs and the entire faction was trying to get on their own needs more money, to have something to brag about to the voters.
For the “popular front” was very important to maintain defence spending at 5% of GDP, since the law on special confiscation is Happy and was not accepted (out of 50 billion UAH in the budget for 2016 laid 10 billion from the special confiscation, the bulk of which was for defense). “Very positive is that we maintain funding bezopasnosti sector in the amount of 5% of GDP, as it began to make more Cabinet Yatsenyuk. This year we achieved that in the amount of 130 billion of UAH were financed security sector. Moreover, the state guarantees on 7 billion of additional funding would also reinforce the position of APU,” – said “Segodnia” the first Deputy head of the faction of the NF and the member of the profile Committee of the Verkhovna Rada Andriy Teteruk.
According to the head of the parliamentary Committee on economic policy Andrey Ivanchuk, among the major achievements of the outgoing year can be considered the adoption of several laws which regulate the relationship between government and business. This “anti-raiding” the law (on improvement of state registration of rights to immovable property and protection of property rights – Ed.) which makes it impossible for a raider attack. “We also managed to take the first step in the reform of the law concerning limited liability companies by adopting in the first reading the bill No. 4666 (which will give the right for many companies to come back in the form of a limited or additional liability companies – Ed.). We also raised the minimum wage to RS 3200, the process of financing capital construction and repair of roads, move towards decentralization, retained a system of payment of subsidies to low-income, initiated by Arseniy Yatsenyuk,” – said “Segodnia” Andrew Ivanchuk.
Increase minimal salary up to 3200 UAH and expectation of some members called “reform happiness.” The idea of the Cabinet, improving mentorplace should withdraw salaries from the shadows, to increase budget revenues from VAT (by increasing consumer spending), to increase the wage Fund and thus to increase allocations of ERUs to the Pension Fund. This should reduce the deficit, which further increased after the reduction of the Ust rate on 1 January 2016 from 38% to 22 %.
At the same time, according to many deputies, most small businesses have nowhere to pay more than 1 thousand UAH per month tax. Many are already preparing to lay off their employees or put them on part-time. Add to that required payments for ERUs “sleeping” FOP in the amount of UAH 704/month even in the absence of economic activity and income, and, under forecasts of experts of the “Reanimation package of reforms” many will simply shut down. But here, the Cabinet came up with how to deal with the “shadow” labor market to carry out checks. According to the Prime Minister Vladimir Groysman, the law (5130, which is already signed by the President – Ed.) gives local authorities the right business checks to prevent registration of workers part-time or part-time. Otherwise, according to Groisman, the penalty hundreds of thousands of hryvnia.
First steps to large-scale tax reform and “purification” of the banking sector
Reform of the banking sector, which has been ongoing for two years, Ukrainians have experienced only in December after the nationalization of PrivatBank. Overall for the year 2016 of the market were withdrawn on 17 banks. By the way, the nationalization of “Private” as the adoption of the budget-2017 were the unspoken markers of the receipt of the next tranche of the IMF loan.
But if the nationalization of “PrivatBank” for the MPs and the government was relatively normal, the real test for the Parliament and the government was the adoption of four budget laws, which, according to the people who laid the Foundation for future large-scale tax reform. The first law No. 5131 has made changes to the Budget code, which actually shifted part of the financing of education and medicine on the shoulders of local authorities. Many people’s deputies and the entire faction in Parliament screaming that this is by no means impossible to do, since regions of such costs simply do not pull. But, according to experts, all this populism and manipulation to newly created communities and regions have enough money, after all, on the shoulders of local governments are passed only the costs of maintenance of the premises.
“Analysis of 2016 showed that the amounts received in the framework of subventions from the state budget is slightly higher than the amount of personal income tax (60% of personal income tax remains in the local budgets – Ed.) which seems to be taken from districts and cities of regional importance. Therefore, the Ministry of Finance made an informed decision to leave the state subventions only the direct costs of direct functions, i.e. teachers and doctors. And maintenance of the premises is again the responsibility of the local authorities”, – explained “Segodnia” the Director on science and development of the civil society Institute Anatoly Tkachuk.
Another budget-act No. 5368 on improvement of investment climate aims to tax authorities become more affordable, and abuse there is decreased. “In fact, the district tax office turn to service agencies. Check go to the level of regions. Further, the elimination of the Tax police, but it will work until the time when next year will be a special law. Following the simplification, the avoidance of possibilities of abuses and of plundering the most corrupt in all the years of independence tax – VAT”, – explained “Segodnia” member of the parliamentary Committee on taxation and customs policy, people’s Deputy from BPP Maxim Kuryachii.
But inherent in the law a provision on the transfer of databases from the GFS to the Ministry of Finance decided to remove. According to the head of the parliamentary Committee on taxation and customs policy Nina southerner, the IMF recommended to first do an audit of all information system databases, and then transfer them to the Ministry of Finance. In the end, the Cabinet and Parliament agreed to leave base at the SFS and the Ministry of Finance before July 1, 2017 will conduct a comprehensive audit of their. Although many MPs called it a “setback” in the reform of the SFS because of the abuse and corruption on the part of fiscal authorities from the audit database will not decrease.
Another budgetory law No. 5132 reform is difficult to call, since almost all of its norms – the fillers of the budget. The law increased the excise tax rates: beer – 12%, strong drinks – 12%, tobacco products – 40%.
“Despite the fact that the law 5132 if only the filling of the budget, there is a large number of rules and corrections of technical errors, which for decades were made to the Tax code, led to the ambiguity of many provisions, and taxpayers had to apply for individual consultations. We are now many rules have changed, cleaned up, made appropriate and understandable for the taxpayer. For example, no one is saying that we cancelled 5132 wholesale license for small Breweries with a production volume of annually up to thousands of liters. There we made rules that override the need for filing small CPA. You remember norm, which accidentally made to the Tax code, and all entrepreneurs had monthly to take account of the number sold liters, pieces and so forth – all of excisable goods? For failure to file such reports, the fine was 17 thousand UAH/month. And since April of this chaos started that all just cried from the norm. We canceled it. And these parts from the text of all bills very much,” said “Segodnia” the head of the parliamentary Committee on taxation and customs policy Nina Southerner.
The last budget-act No. 5130 gutted scholarships. If earlier scholarships received 2/3 of the students in your course, from 1 January 2017 this figure will not exceed 10-15%. According to the Deputy Minister of education and science Vladimir Kovtuna, students will receive a scholarship based on the rating of their performance. But the minimum stipend will increase to 1.1 thousand UAH 825 UAH, increased to 1.6 thousand UAH 964 UAH. But the losses, according to the head of the parliamentary Committee on economic policy Andrey Ivanchuk, can rightly be attributed to the failure of the bills which relate to the privatization of state – owned enterprises privatization program for 2016 has not been implemented.
The officials opened their declarations, and the judges were deprived of inviolability
Almost all respondents “Segodnia” the MPs stated that, probably the most significant and widespread reform in 2016, was judicial reform. Second reading 2 June Parliament 300 votes adopted amendments to the Constitution on justice and the law on judicial system and status of judges. “We changed the Constitution limited the immunity of judges. We adopted the law on the High Council of justice (in the night of 22 December, when the Parliament accepted the budget – Ed.) we changed the Constitution in terms of reorganization of the judiciary began its reform,” – said “Segodnia” the people’s Deputy from BPP Ivan Vinnik.
Earlier “Segodnia” have analyzed the main innovations adopted by the trial changes. The new law on judicial system and status of judges of Ukraine returns to a three-tier court system, which operated until 2002: the courts of first instance, appeal and Supreme court. A four-level judicial system for themselves created Viktor Yanukovych, taking APU lion’s share of authority. Now, still in the formation of a new composition of the Supreme court on the basis of open competition, which can be submitted candidates are not from the system – lawyers and academics.
“The Constitution removed the provision of full judicial immunity. In the case of detention of judges during or immediately after committing a serious crime no consent is generally not required. In other cases, consent to the detention of judges will give Higher justice Council (a new body, an old High Council of justice with broad powers – Ed.)”, reads one of the reports of the Council on the progress of judicial reform.
The issues of appointment and transfer of judges also gave High Council of justice (previously this was the head of the Parliament). The Constitution prescribed, and grounds for dismissal of judges (can dismiss if the judge can not confirm the legitimacy of the source of origin of property). And, probably most importantly, these amendments to the Constitution the Prosecutor’s office was deprived of General supervision, leaving behind it only right to support prosecution in court.
Fighting since August 15, the same unified electronic database of declarations of incomes and property of officials. It was one of the main requirements of the European Union towards visa-free regime. Now officials are required to specify in their declarations the amount of “cache” under the mattress, and the property of the next of kin (because the officials simply copied illegally acquired children, wives, cousins, grandparents), and for lying in a Declaration is provided for two years of prison. The public and experts have long promoted e-filing and preparing for the appearance of the first declarations suggesting that the poor of our top officials are obviously not. But seen threw the community into shock.
President Peter Poroshenko, for example, a house near Kiev on 1331,8 sq m, six of land, of which one is leased (the total area is 5.4 ha), three apartments (two in the winery, the biggest in Kyiv 134 sq m), hostel in the mortgage. In Bank accounts – $26.3 million, 540 thousand hryvnias and 14.3 thousand euros. Cash – UAH 900 thousand and $60 thousand a Lot of property, three collections of paintings, sculpture collection, five pairs of hours, one leather coat, expensive cufflinks and tie holder. The Prime Minister Volodymyr Groysman 2 houses (534 and 461,1 sq m), three stores, two annexes and one apartment. On accounts in banks of 2.13 million and UAH 16 thousand euros, and cash on hands of 2.28 million, $870 thousand and 460 thousand euros.
“Radical” Andrey Lozovoy surprised his love of religious sites. He has declared a collection of 72 icons and the cross engolpion with the Holy relics of the XIII century (enkolpion is a small box in the shape of a cross, within which are kept the consecrated communion bread, or the relics of saints). In addition, he contributed to registry, collection of edged weapons of the XIX—XX centuries of the 32 units, as well as a few hours and furniture of the XIX century. Everything Lozovoy reported about 186 bottles of a rare wine. But the people’s Deputy from BPP Anatoly Matvienko as real estate pointed out the building of the temple of the Dormition of the Holy virgin in Vinnytsia region with an area of about 41 sq. m. in Addition, he owns three plots of land, two apartments, two garages and a house.
Now, according to deputies and experts working in NACP and NABOO, they should closely study the style of life of our officials to their income. And if it is proved a mismatch, the perpetrators should be punished.
Podvisli reform of education and health, there are only laws and concepts
Of positive developments this year was the adoption in the first reading a new law on education.
As already wrote “Segodnia” perhaps the most important aspect of the upcoming reforms – the 12-year education system in schools. Its main advantage is the similarity with the European model of education. This means that, after transition of the Ukrainian diplomas will be quoted in the West. In addition, 11-year-old program is difficult to accommodate the whole range of knowledge. But with the transition to 12-year-old will be able to unload and students, and teachers. By the way, today all countries of the former Soviet Union, except Ukraine, Russia and Belarus, switched to a 12-year system. Despite the advantages of 12-year-olds, the Ukrainians to the idea of the wary: the survey of the Fund “Democratic initiatives them. Ilka Kucheriv”, 70% of parents and 68% of teachers voted “against”.
As planned by the Ministry of education, a new set of 12-year-old will start only on 1 September 2018. First, the bill has not yet passed second reading, and secondly, the parliamentary Committee pulls with his training. If parliamentarians do not frustrate the deadline students who learn today in the 7th grade, in 2018, will finish the 9th grade. And if before September 1, 2018 will be able to build a new grid of secondary schools and create colleges (lycées) and vocational schools, there kids will do the testing after the 9th grade. This system operates in the USA, Canada and throughout Europe.
But before large-scale health reform, neither the government nor the Parliament of the hands never came. The Cabinet of Ministers managed to approve only 10 core regulations, and the concept of new healthcare system from the Ministry of health for three years. Start medifarma the system start-up family medicine European model on the basis of polyclinics and surgeries. Ukrainians will be able to choose a family doctor and pediatrician, with them signing direct contracts with clearly defined scope of free services. Reference to the place of residence thing of the past, and if the doctor does not meet the requirements of the family, it can be changed.
Within three years there needs to be a transition to a model of national solidarity health insurance with 100% coverage of citizens. Fees insurance premiums will be made through the General taxation system, and will be collected in the state budget, and insurance payments for the treatment of the individual will not be linked to the size of his individual contributions. “State insurance will provide a guaranteed package of medical services that do not need to buy them will pay the state the money from the budget. And in 2017, this insurance model will work in primary care – this will be prevention and early diagnosis of diseases. Then, when we have statistics, we define ischerpyvayuschie the list of services”, – explained in the Ministry of health. That is, in 2017, everyone who came to the hospital will be eligible for a free diagnosis.
However, the concept of the Ministry of health exactly in exactly repeats the plan of medical reform, the ex-Minister of health Sandro Kvitashvili. He even submitted to the Parliament a package of bills, which simply blocked the parliamentary Committee and demanded the resignation of the Minister.