Defence and security policy and social protection remain the priority areas of our state's expenditures.
Moreover, in accordance with the Ukraine Facility 2024-2027 Implementation Plan, over the next three years, Ukraine will implement ambitious reforms in the social sphere with the financial support of the European Union.
The main directions of reforms in the field of human capital development are based on the following strategic goals for the period 2024-2027:
- strengthening education and skills;
- ensuring access to healthcare services and improving rehabilitation;
- returning to the labour market of people excluded from it due to various circumstances, including the war, and eliminating the social and economic consequences of the war;
- increasing the percentage of physically, economically and socially active population.
Reforms are to be implemented with a gender approach, which ensures that the interests and experiences of women and men are taken into account as an integral part of planning, implementing, monitoring and evaluating policies and programmes in all spheres of society to ensure equal benefits.
Under Pillar I of the Ukraine Facility, the following reforms are planned, in particular:
- Reform 1: Improvement of vocational education;
- Reform 2. Improvement of preschool education;
- Reform 3. Improving the rehabilitation system for people with disabilities;
- Reform 4. Transition from military service to civilian life;
- Reform 5. Improvement of social infrastructure and deinstitutionalisation;
- Reform 6. Improving the functioning of the labour market;
- Reform 7. Ensuring access to housing for people in need;
- Reform 8: Improving social security;
- Reform 9: Improving cultural development.
In addition, the Government will continue to improve the mechanisms for financing social protection, healthcare, education, and business support, including the results of expenditure reviews. This will include reforms of the pension system, disability payments, higher education, etc., including to ensure their fiscal sustainability. Ukraine prepared a concept note on social security reform in January 2023 in accordance with the terms of the IMF programme and with the technical support of the World Bank. The proposed social protection reforms will be coordinated with the activities of the IMF and the World Bank.
Thus, the European Union's financial support programme for Ukraine will be implemented in accordance with the Ukraine Facility 2024-2027 Implementation Plan.
The plan will promote political, institutional, legal, administrative, social and economic reforms necessary to align with the values of the European Union.
With the successful implementation of the Plan, the end of hostilities, and continued support from other donors, Ukraine's economy is expected to show high growth rates in the next decade.
Under an optimistic scenario, real GDP will return to 2021 levels by 2028, and by 2033, thanks to the structural impact of reforms and the contribution of investment, the economy could grow by 40% compared to 2021.
For reference:
The Ukraine Facility Plan is a technical document required for the implementation of the European Union's financial support programme for Ukraine.
The plan envisages the implementation of reforms that will lay the foundation for further economic recovery and development and Ukraine's integration into the EU.
The preparation of the Ukraine Facility Plan was carried out by the Cabinet of Ministers of Ukraine under the coordination of the Ministry of Economy, headed by the First Vice Prime Minister and Minister of Economy Yuliia Svyrydenko.
The work on the Plan was carried out in close cooperation with the European Union, as well as in consultations with business, civil society, think tanks, MPs and representatives of the regions.