40 percent of Ukraine’s economy works off the books, social policy minister says

Ukraine’s Social Policy Minister Andrii Reva believes that about 40 percent of the Ukrainian economy works off the books, so its unshadowing at this stage could bring more income to the budget than rapid economic growth.

The minister said in a statementCensor.NET reports citing the government’s press office.

"This was proved by the government in 2017. The payroll fund in 2016 amounted to 584 billion hryvnia and the Ministry of Economic Development and Trade expected it to grow by 82 billion. The Social Policy Ministry, however, said that this figure was understated and predicted the fund to receive 212 billion instead. In fact, the payroll fund amounted to 796 billion hryvnia in 2017. With 2.5-percent economic growth, the budget received 212 billion hryvnia. Where did the money come from? The answer is very simple: this money came from the black economy because the minimum wage was doubled," the minister said.

According to Reva, there is a powerful political lobby which hides behind the slogans of protecting the market economy rules but in fact protects the interests of the businesses working off the books thus destroying the economy and the people's right to a decent future.

"We must crack down on the shady economy and not listen to those who defend the companies operating off the books. The black economy has a powerful lobby that uses slogans like ‘business is dying’ and ‘everyone will seek to enter shady economy’, but they are already working off the books! And, if we want people to be protected, want them to be not dependent on the slaveholders reluctant to report the real salaries, then we must combat black economy and do not be afraid of such criticism," the official said.

Источник: https://censor.net.ua/en/n3062109