The draft State Budget Law for 2025 adopted by the Verkhovna Rada of Ukraine reflects the difficult socio-economic situation in the country caused by the full-scale war. Despite the limited resources, the budget clearly defines priorities aimed at ensuring the security and defence of the state, as well as supporting the most vulnerable groups of the population. Particular attention is paid to social protection, which is one of the key areas of state policy.
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Social protection of the population: main directions
Social protection of the population remains one of the priority areas of state policy. In 2025, UAH 420.9 billion is allocated for social payments, which is equal to the level of funding in 2024. The funds will be used to:
- Supporting low-income families: UAH 19.7 billion is planned to be allocated for this purpose. It is envisaged to increase the level of subsistence minimum for low-income families by 5%.
- Social protection of IDPs: The living allowance for internally displaced persons has been preserved at UAH 3,000 for people with disabilities and children, and UAH 2,000 for other persons.
- Payment of housing subsidies and benefits: UAH 42.3 billion is allocated for this purpose.
- Social protection of persons with disabilities: UAH 6.7 billion has been allocated for the social protection of people with disabilities. The funds will be used to provide additional rehabilitation equipment, prosthetics and orthotics, and rehabilitation of children with disabilities.
- Social protection of children and families: UAH 27.4 billion is allocated for the social protection of children and families. A significant portion of the funds will be used to support family upbringing, in particular, to pay allowances for the maintenance of a child in a foster care family, to pay for childcare services, and to pay allowances for orphans raised in foster families and family-type homes.
- Development of the social services system: UAH 1.6 billion is planned to be allocated for the development of the social services system. The funds will be used to pay for the cost of a comprehensive social service to build resilience, provide certain social services to the elderly, IDPs with disabilities, provide social services for inpatient care and supported accommodation for elderly IDPs, persons with disabilities on the principle of ‘money follows the person’, and pay for day care services for children with disabilities.
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Problems and prospects for the development of the social security system in Ukraine
The social security system in Ukraine, despite significant efforts by the state, still has certain shortcomings. Insufficient funding is one of the most acute problems, making it impossible to ensure an adequate level of social benefits and services for all segments of the population. The combination of this with inefficient use of funds caused by corruption, bureaucratic barriers and lack of transparency results in a significant loss of budget funds.
Another problem is the insufficient targeting of assistance. The existing system of social payments does not always accurately identify the most needy citizens, which leads to inefficient allocation of resources. In addition, the poor quality of social services and limited accessibility are particularly evident in remote and rural areas.
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There are also significant prospects for the development of the social protection system in Ukraine. Increasing funding is a priority. A gradual increase in social protection expenditures to the level of EU countries will ensure a decent standard of living for all citizens. At the same time, the system of social benefits should be reformed to become more targeted and based on the principles of social insurance and social assistance.
Fighting corruption and simplifying administrative procedures are key to improving the efficiency of spending and access to social services. The development of social entrepreneurship can become an additional source of funding and create new jobs. Digital transformation will simplify procedures for obtaining social services and increase their transparency.
International cooperation plays an important role in the development of the social protection system. Attracting international assistance can provide additional resources and transfer of international experience.
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