Jaresko promises that decentralization will give local governments 45 billion hryvnias

Fiscal decentralization will give local governments 45 billion hryvnia of additional resources that local authorities will be able to use for solving urgent problems of subordinate settlements.

This was disclosed by the Minister of Finance of Ukraine Natalia Jaresko on her page on the social networking site Facebook.

The Minister reminded that in 2015 the government is taking its first steps towards decentralization. Amendments to the Budget Code provide for a new system of intergovernmental relations, in which the government gives local budgets more resources, but at the same time increases their responsibility for expenditure.

In particular, government transfers to local budgets 10% of corporate income tax, 100% of state duty, 100% of payments for the provision of administrative services, 80% of the environmental tax, excise tax, 25% of the payments for mineral wealth, property tax, flat tax, utilities’ income tax, local duties, and other taxes.

According to Jaresko, instead of the system of revenues and expenses balancing, a radically new system of the area tax capacity equalization is introduced. In addition, local state governments now will not have to wait for the adoption of the state budget to create their own.

The Minister stressed that the government believes in high efficiency of future decentralization process to local communities and people.

Source: UNIAN