By KYIV. Nov 13 (Interfax-Ukraine) – The Cabinet of Ministers has improved the process of providing grants for the creation and development of processing enterprises within the eWork program by using funds from the Compulsory State Social Insurance Fund in case of unemployment as a source of financing.
According to the Ministry of Economy, the corresponding decision was made at a government meeting on Friday.
“Attracting funds from the Compulsory State Social Insurance Fund in case of unemployment to finance the eWork grant program will contribute to the development of the processing industry, the creation of new jobs, as well as economic growth,” Deputy Minister of Economy of Ukraine Nadia Bihun said.
According to the report, the State Employment Service has been appointed as the main administrator of these funds.
According to the deputy minister, thanks to this decision, by the end of this year, entrepreneurs will be able to receive grants for processing in an additional amount of up to UAH 1 billion. Next year, the government is planning more than UAH 5 billion for grants in the processing industry from all sources. It is expected that about 1,000 enterprises will be able to receive them, which will create up to 20,000 jobs in the processing and related industries.
The Ministry of Economy has calculated that funds allocated under the eWork program for grant support for enterprises should be returned to the budget in the form of taxes and fees within three years. In practice, enterprises that took part in the program, thanks to an increase in production volumes, return such funds in the form of taxes within a year.
“The development of processing enterprises stimulates demand for production of equipment for processing enterprises in the domestic market and has a multiplier effect on replenishing budgets at all levels. Thanks to the increase in the number of new jobs, the burden on the state budget in terms of unemployment benefits should be reduced. In the future, this will help return internally displaced persons from abroad,” Bihun concluded.
