Report Groysman: the main theses and experts

Prime Minister Vladimir Groisman reported at yesterday’s meeting of the Cabinet of Ministers on the results of the work in 2016. Summing up, the Prime Minister spoke about the stabilization of the economy, infrastructure as well as work in the social field. “Today” has analyzed the report and found out that on government action the experts think.

The money of the country. Groisman noted that the main task was macroeconomic stabilization, which is achieved managed through, for example, budget reform. So, the state budget has received 616 billion, which is more than the amount in 2015 81.6 billion. In addition, the budget deficit is expected to 83,7 billion amounted to 70.1 billion.

Separately, the Prime Minister drew attention to the development of the concept of medium-term planning budget (for the next three years). This work began last year with a study of European practices, however, was never completed due to a revision of the cooperation program with the IMF.

“Yes, what’s the plan?”. However, the economist Alexander Okhrimenko doubt that this concept will allow us to achieve significant growth. “Such planning was trying to enter and of the previous government of Ukraine. But the Ukrainian economy is difficult to predict even the next quarter, and not that for three years, — said the expert. — You can look at the predictions of past years and ensure that they rarely came to pass — always differs from the forecast. The same situation with inflation”. According to Okhrimenko, this approach may work in developed countries — there is not such a large percentage of the shadow economy and there is constant political and economic crises.

Pit and gas. The Prime Minister boasted, and active repair of roads. According to him, last year eliminated more than 9 million square meters of holes on roads, that is one and a half times more than in 2015. Also to reconstruct fully managed 950 km, which is four times more than in 2015 (239 km).

At the government meeting, and I remembered the reforming of the gas market and, in particular, “Naftogaz”. Recall that, according to the decree of the Cabinet of Ministers, the function of storing and transporting gas in the past year were divided between different companies. This was done under the third energy package of the European Union, which is part of the undertaken obligations by Ukraine.

However, the Director of energy programmes of the Center for world Economics of the NAS of Ukraine Valentyn Zemlyansky believes that the separation took place only formally, but in fact the company, which have borne these functions are subsidiaries of “Naftogaz”: “this allows the company to fully control all of their financial activities. It was of a purely formal nature to fulfil the EU requirements. In the end, the money received on the reform of the market, then it was tied under the loan, and that stopped.”

MONEY AND WORK. Remembered the Prime Minister and the government in the social sphere, which resulted in the growth minzarplat to 3,2 thousand UAH. In the document there is a speech and about “positive changes in the employment issue” — over the past year the number of employers in the country grew by almost 6 thousand, and amounted to 164.8 thousand, and the total number of vacancies — 919 thousand Ukrainian labour market showed an increase of 43.5 thousand jobs.

HR expert, HeadHunter Catherine Mashchenko noted that the situation on the labour market in the past year can be called a period of growth and overcoming the crisis: “the Number of vacancies, only according to our calculations, for the year increased three times. This increase was not observed in the last few years, and it really was a breakthrough. Last year, more than 90% of Ukrainian companies were recruiting. No one is saying that it was the massive sets, but someone opened branches, and some branches. Already this shows that the business has adapted to the situation in the country.” The expert believes that the growth of jobs and vacancies also with the stabilization of the economy and the output part of the entrepreneurs from the shadows.

Challenges for the future. Together with the report of the Cabinet of Ministers was announced and its tasks for the near future. So, the government intends to approve the plan for reforming public Finance for the period up to 2021. It includes the plan approval limits for expenditure budget (this year it is 790 billion). In the context of the reform of the SFS planned elimination of the tax police, which is the financial police. It will work on any and all financial offenses. Among the infrastructure issues that still should be solved — the registration in Parliament of the draft law “On railway transport”, which will allow you to enter the market of railway transport to private companies. In addition Groisman promises to soon create an energy efficiency Fund, which will issue credits for housing insulation. Finally, the health sector needs to develop a mechanism of compensation money to the Ukrainians for asthma, cardiovascular disease and diabetes. Although, as stressed by the Prime Minister himself, in the first place he submits an annual report to Parliament.