In Ukraine, the pension Fund deficit already amounts to 145 billion UAH ($5.8 billion) that jeopardizes pension payments. This was stated by Minister of social policy Andrei Reva in the air of the Ukrainian TV channel.
“If in 2014, the deficit of the pension Fund amounted to 80 billion UAH and the question was how to cover it, it was decided to tax pensions that gave 1 billion 800 million UAH a year, than we decided to reduce the rate of single social tax from 38% to 22%. After that some of our economists have argued that once we reduce the rate of the unified social contribution, the shortfall of funds was overlapped,” said Reva.
However, according to the Minister, five months have passed, and the pension Fund deficit increased to 145 billion UAH.
“I mean, we took 65 billion UAH, and gave to big business, hoping that it would be a shame, and it will return through higher wages and payment of contributions to the pension Fund. This did not happen,” said Reva.
“Today we are in a situation, when in fact a disaster with the pension payment is brewing, namely the deficit of the pension Fund,” said the Ukrainian Minister of social policy.
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