The draft state budget-2018: social standards will rise more than inflation

The government plans next year to raise the average subsistence minimum (PM) by 9%, which is above projected inflation of 2%. Such a rule laid down in the draft budget for 2018, which yesterday appeared on the website of the Verkhovna Rada.

The Cabinet plans, and in 2017, twice to raise social standards, but only in the second half of the year, not may as was. According to government estimates, from 1 January 2018 all PM’s, increased from December 1, 2017, will remain the same. That is, the average PM will be 1700 UAH, for able-bodied PM – 1762 UAH, for pensioners – 1373. (corresponds to the minimum pension in the presence of experience), for children up to 6 years – 1492 UAH, for children from 6 to 18 years – 1860 UAH.

But with July 1 and December 1, 2018, the increase will be the average cost of living will rise first to 1777 UAH (+UAH 77), then until 1853 UAH (+UAH 76). The working RM will raise up to 1841 UAH (+UAH 79) and 1921 UAH (+UAH 80), pensioners – to 1435 (+62 UAH) and 1497 (+62 UAH), children up to 6 years up to 1559 UAH (+UAH 67) and 1626 UAH (+UAH 67), children from 6 to 18 years up to 1944 UAH (+UAH 84) and 2027 UAH (+UAH 83).


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The experts welcome the increase in social standards, but I doubt that they will be able to offset rising inflation. “This year, price growth is expected to have approximately twice larger than included in the state budget or by 16%, so it is unclear what the government intends to curb inflation at 7% in 2018 if GDP growth laid a total of 3% instead of 5-7%”, – analyzes economist Ivan Nikitchenko.