The Cabinet to compensate losses of Naftogaz in the amount of 114 billion a year, and the subsidies will spend 55 billion.
The provision of subsidies for payment for housing and utility services is a more effective mechanism than the regulation of energy prices and subsidies to Naftogaz. This was stated by Minister of social policy Andrei Reva, the press service of the Ministry of social policy.
He explained that these funds through subsidies get to those who have low incomes, and the subsidized gas prices reduce the price for the entire population, including those who is unable to pay.
“In 2014, to extend the program of housing subsidies to reduce the prices below the market, the state budget to compensate losses of Naftogaz in the amount of 114 billion a year. All allegedly received cheap gas, and then we all paid him the real price, but through the budget. This year the subsidy is spent about 50 billion hryvnia, which is twice less than when we subsidize Naftogaz”, – the Minister added.
Reva also stressed that any price reduction below market requires further funding the difference from the state budget, i.e. by taxpayers.
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