Raising gas prices can lead to collapse in public sector - Head of political council of Socialist Party Slysh
An increase in gas tariffs by 23.5% could lead to a collapse, since local budgets do not announce additional funds to pay for services at new prices, Head of the political council of the Socialist Party of Ukraine (SPU), Head of the Kharkiv regional organization of the SPU Viktor Slysh has said.
"The budget sphere may suffer. The increase occurs in the middle of the budget year, when budgets have already been adopted. It will be necessary to pay for schools, kindergartens, while money for this is not assigned in the budget. According to the Constitution, if the state makes a decision that leads to an increase in spending of local budgets, then it should compensate these funds from the national budget. Without this, a collapse awaits us," he said on the 112 TV channel.
He also said that the previous increase, according to Prime Minister Volodymyr Groysman, should have been the last, but the lack of a long-term policy in the country leads to new unreasonable decisions and an increase in tariffs.
"Every prime minister, including Groysman, has promised that this increase will be the last and that we have our own gas. However, we do not have a long-term policy: we do not know what will happen in a year, two, or three. It turns out that every government is temporary. They work for a year and cannot plan for longer," he said.
In his opinion, the public should be explained how the tariffs for utilities in general are formed. In addition, there should be monetization of benefits by the state, and not by local budgets.
"The government is now throwing ideas, but who will implement them it does not specify. Monetizing benefits is the task of the national budget, not local ones. The government should clearly say: here is UAH 1,000. This is compensation for payment of utility services, monetization of benefits," Slysh said.
As reported, the price of natural gas for the households and municipal heat supply companies from November 1 will grow by 23.5%. This issue is the key to renewing IMF funding.