Experts supporting the creation of a technocratic government in Ukraine have written an action plan for the new government.
The document was posted to the website of the Reanimation Package of Reforms civil platform.
Experts said the aim of economic policy should be the restoration of fast and sustainable economic growth. This can be accomplished by improving conditions for investments, increasing the private sector’s role in the economy and preventing corruption in the public sector.
Experts said that privatization of state assets and state property management is important in 2016. They said it is necessary to conduct at least three tenders for states in state-owned enterprises, as well as sharply reducing the list of enterprises not subject to privatization, In addition, they said the State Property Fund should become the public assets management body responsible for due diligence.
Experts said removing the ban on selling agricultural land from 2017 should be removed to improve the investment climate. Restrictions on dividend payments abroad should also be voided, they said. Experts said laws should be adopted by June for improving the country’s tax system and providing a level playing field for business. The measures should reduce the costs of taxpayers on tax compliance and eliminate opportunities for corruption and abuse by state officials. The reform package itself should be fiscally neutral, according to the experts, who said tax cuts should be made in line with a reduction of the share of public spending as a portion of GDP.
To improve the conditions for business development experts said it is necessary to implement a program in 2016 to improve Ukraine’s ranking in Doing Business; to launch the so-called regulatory guillotine for reforming supervisory and control bodies; to simplify foreign exchange regulations and to remove restrictions on foreign currency payments for trade operations, as well as adopting proactive trade policies which support Ukrainian companies entering foreign markets.
They said government should pursue a consistent policy on reducing the state role in re-distribution of revenues by completing a comprehensive review of public spending and by continuing the reform of public procurement, verification of recipients of pensions and social payments and verification of financial status of recipients of social payments. During the year it is necessary to start a pension reform that shall include the introduction of an accumulative component of the pension system, the said.
Experts said it is necessary to immediately create an office within the State Fiscal Service for large tax payers during the year. They recommended introducing an automatic procedure that ensures guaranteed full reimbursement of VAT to exporters.
Experts said government should also devote more funds and effort to attracting resources of international financial organizations considering investment projects in Ukraine. World Bank projects also represent unused financing in the amount of $2 billion, which is almost equal to the government’s entire capital expenditures in 2015.
