Reform Index 142: Creation of the Unified Electronic System and Monetization of the "Baby Package”

Reform Index 142: Creation of the Unified Electronic System and Monetization of the “Baby Package”

5 October 2020

In the previous round, the index was +0.8 points.

Chart 1. Reform Index Dynamics

Chart 2. Reform Index and its components in the current round

Changes in the procedure for approval of construction projects and their examination, +1.5 points

In November 2019, the President signed Law 199-IX, which established that the government should create a Unified State Electronic System in the field of construction (iMoRe 122). This system should allow all construction customers and designers to submit and receive documents to / from government agencies in electronic form. This system should provide services on a “single window” principle.

In June 2020, the government launched a pilot project to create the unified database in the field of construction. However, for the system to work fully, a number of procedures required for the registration and examination of construction projects needs to be changed.

Resolution № 752 of 26 August 2020 should resolve this issue. One of the main innovations is the form of an expert report on construction projects. Now it necessarily must contain a “positive” or “negative” conclusion. Such an examination can be performed by organizations that meet the criteria set by the Ministry of Regional Development, and their register now will be public.

The procedure for joining legal entities and physical persons to the system of exchange of electronic documents with regulatory authorities is simplified, +1.3 points

Physical persons and legal entities can submit reports to regulatory authorities (tax service, social insurance funds, local governments, etc.) in paper or electronic form. To file reports electronically, you must enter into an agreement with the State Tax Service on the recognition of electronic documents. In practice, this was done through the procedure of joining the taxpayer to the unified agreement on the recognition of electronic documents.

By Order № 261 of 01.06.2020, the Ministry of Finance simplified this procedure. Now the agreement on the recognition of electronic documents will be concluded automatically when the taxpayer sends the first electronic report.

Introduced the ability to remotely receive an electronic signature in the application “Smart Diya”, +1.3 points

The “Diya” application was introduced so that Ukrainians could receive administrative services online. By Resolution №785 of September 2, 2020, the government introduced the possibility of obtaining electronic signatures remotely. This can be used by citizens whose data are in the demographic register. In particular, this category includes holders of biometric passports or ID cards.

The monetized state aid “baby package”, -1.0 points

The “baby package” program has been operating since 2018. At the birth of a child, parents have been receiving a box of basic necessities for the child.

By the Resolution № 744 of July 29, 2020, the government introduced the monetization of such aid: instead of a “baby package” parents should have received a card with 5 thousand hryvnias, which they could spend on buying children’s goods in certain stores.

Later the Parliament passed the law that returned maternity benefits in the form of a “baby package”.

Chart 3. Value of Reform Index components and number of events

Note: Reform Index aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in five areas:

  1. Governance
  2. Public Finance
  3. Monetary system
  4. Business Environment
  5. Energy

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