Government budget, lockdown rules, and new competitions for civil service

While MPs are preparing for the next plenary week, the Cabinet continues to adopt decisions of state importance. Today in our digest: the government draft budget for the next year, benefits for vaccinated citizens during the lockdown, and the results of competitions for civil service positions.

The government draft budget submitted (6000)

Sponsor: the Cabinet.

Who is affected: Ukrainian citizens, businesses, government bodies, local councils, prosecution, judiciary, and law enforcement agencies.

Summary of the bill:

• the Cabinet expects ₴1 trillion 267 billion of revenue for the next year. Sources of the revenue:
  • the VAT on the imported goods and services — ₴398 bln
  • the VAT on the goods produced in Ukraine — ₴166 bln
  • the income tax from individuals — ₴160 bln
  • the income tax from companies — ₴137 bln
  • the excise taxes (on tobacco, alcohol, and distilled beverages) — ₴84 bln
• expected expenditures are ₴1 trillion 441 billion. The largest shares are allocated for:
  • the Ministry of Social Policy — ₴318.7 (200.6 — for the Pension Fund)
  • the Ministry of Health — ₴191 bln (157.7 — for the Medical Guarantees Program)
  • the Ministry of Defense — ₴131 bln (97.4 — for the Armed Forces of Ukraine)
  • the Ministry of Internal Affairs — ₴98 bln: 35.6 — for the National Police, 16.6 — for the State Emergency Service, 14.5 — for the State Border Guard, and 14 — for the National Guard
  • the Ministry of Education — ₴57.6 bln.

What is right:

• the Government submitted the government draft budget on time. The law provisions for the Cabinet to do that by September 15
• Ukrainian citizens and MPs will have time to read the document that defines the priorities of state policies proposed by the Government for the next year.

What is wrong:

• a large budget deficit of ₴188 bln (13% of total budget spendings, 3.5% of the GDP)
• a significant share of the government budget will be spent on social security: ₴318.7 bln (22% of budget spendings). Ukraine is a socially-oriented country and has to help its citizens. However, if a large share of the budget is spent on social benefits, there will be not enough funding for the development and maintenance of the infrastructure
• the Government relies on possible “qualified expenditures” of ₴30 bln that it plans to pay for after the changes to the Tax Code are adopted in the version proposed by the Cabinet. The Cabinet plans to use this funding to pay for the all-national census, railway infrastructure, airports, “the great restoration”, and “the great construction.” If MPs do not adopt the changes to the Tax Code, there will be no preparations for the census and the implementation of big infrastructural projects.

What’s next: by October 20, MPs have to adopt the draft bill in the first reading, by November 20 — in the second reading, by December 1 — to pass its final version. MPs can introduce substantial changes to the government budget so the final version of the document can be radically different from the one submitted by the Cabinet.

New lockdown restrictions defined

Decision-maker: the Cabinet

Who is affected: Ukrainian citizens, businesses, government bodies, and local councils.

Summary of the resolution:

• introduces “yellow” and “green” COVID-certificates. “Yellow” certificates will be issued for those who got one dose of the vaccine, “green” — after the full vaccination
• educational establishments, museums, cinemas, theaters, gyms, and swimming pools will be allowed to stay open in “yellow” quarantine zones if at least 80% of their personnel is vaccinated, in “red” zones — if all personnel is fully vaccinated.
• persons with COVID-certificates will be allowed to skip self-isolation after returning from abroad or from the temporarily occupied territories.

What is right: the Government is trying to fight the pandemic by introducing preventive measures.

What is wrong:

• lockdown restrictions introduced by the Government as a quarantine measure are characteristic of the emergency state that can be declared only by the President with the consent of the Verkhovna Rada. The Cabinet for more than a year and a half is acting outside of its authority
• the Constitutional Court has already ruled unconstitutional the lockdown restrictions imposed by the Government.

New competitions for civil service positions announced

Decision-maker: the Cabinet.

Who is affected: ministries, central executive bodies, civil servants, candidates for civil service positions, and Ukrainian citizens.

Summary of the ordinances: relaunch the competitions for the following positions:

• head of the State Agency of Forest Resources of Ukraine
• head of the State Service for Geodesy, Cartography, and Cadastre
• head of the State Labor Service
• head of the State Agency for Fisheries
• first deputy head of the State Reserve Agency
• deputy head of the State Reserve Agency
• deputy head of the State Treasury Service for Digital Development, Digital Transformations, and Digitalization
• deputy head of the State Agency for Art and Art Education.

What is wrong:

• some of the previous competitions failed to find candidates good enough to take the positions. Competent professionals now often do not want to apply for competitions even for the top positions because in 2019-2020 politicians proved that they can dismiss anyone at will and resort to “lockdown” competitions
• politicians block the appointment of the winners of the competitions if those winners are not the persons they promoted. As a result, competitions do not serve their ultimate purpose of appointing the best candidates instead of the most loyal ones.