The social assistance reform is one of the most important technical reforms badly needed in Ukraine. Every year the government spends dozens of billions hryvnias for social protection, which is one of the largest spending items of the general budget. However, only 1/3 of those outlays effectively reach the poorest Ukrainians. The key reason for such wastefulness is the authorities’ reluctance to use means-testing for provision of privileges and other social assistance. As a result, it appears that in our country the richer your are the more “social protection” you have from public funds.
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