In Zhytomyr region why the need for subsidies

Previously through artificially low rates the government subsidize the rich and the poor. The total volume of such direct subsidies of gas and heat in 2014 amounted to 120 billion hryvnia – this is the amount which exceeded 25% of the State budget. The government has restored social justice by replacing fuel subsidies with targeted subsidies to consumers. The wealthy can and should pay for gas which is consumed, alone. State support will be provided to those who really need help. For targeted schemes providing subsidies only to low-income, the amount of targeted subsidies in 2016 is 40 billion, accounting for only 5% of the State budget. This year on subsidies, the Government has allocated 40 billion UAH. The funds received to the State budget rental payments from gas companies. In 2016, low price of gas would have cost the state 170 billion. The money would go to subsidize "Naftogaz". The difference is 130 billion – this means that the years steal from the pockets of Ukrainians, and could be directed at raising the social standards for them. This was reported in the Zhytomyr regional state administration

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Source: http://uzinform.com.ua/

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