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Decentralization will provide local budgets with 45 milliards hryvnas, - Yaresko

Budget decentralization will provide local budgets with 45 milliards hryvnas of additional resources which local authorities will be able to allocate for solution of essential problems of relevant localities. It was informed by the Minister of Finance of Ukraine Natalia Yaresko on her Facebook page. Minister reminded that in 2015 the government makes the first steps towards the decentralization of power. Amendments to the Budget Code found a new system of budget relations within which the government provides bigger resources to the local budgets, but simultaneously increases their responsibility on costs. In particular, the government passes on to the local budgets 10 % of profit tax for companies, 100 % of state fee, 100 % of payment for providing administrative services, 80 % ecologic tax, excise tax, 25 % payment for the bowels, property tax, single tax, profit tax for communal enterprises, local and other taxes.

According to Yaresko, a principally new system of aligning the ability to pay taxes by the localities is launched in order to replace the system of balancing revenues and expenditures. Besides, local authorities now should not wait for adoption of a state budget in order to form their own budget. Minister emphasized that the government is convinced in the high level of speed and effectiveness of forthcoming decentralization process for local communities and the people. 

As informed before, Verkhovna Rada of Ukraine has adopted in the second reading the law of Ukraine amending Budget Code that provides for the budget decentralization (# 1557). The law is necessary for adopting the law on state budget for 2015.

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