Odesa, March 11, 2015 – Sergiy Sharshov, director of the department of local government and territorial organization of power Minregion; Galina Markovich, deputy director of the local budgets, head of planning of local budgets of the Ministry of Finance of Ukraine; Viktoria Popova, head of development of legal acts and information-analytical maintenance of local taxes and fees, payments for land tax entities Department HFS Ukraine; Dmytro Vasilyev, communication coordinator of the Initiative decentralization of power, held a briefing on “Budget and tax decentralization in Ukraine”.
Dmytro Vasilyev said that in Ukraine in March and April are going series of round tables, where representatives of the central government explain to local state officials the essence of fiscal decentralization in the country.
Sergiy Sharshov told that April 1st of last year was adopted the concept of decentralization. It is a massive reform that will change the organization of local authorities. Under this concept has adopted several laws. Reform is impossible without amending the Constitution, as a working group that is working to change.
Galina Markovich said that the amendments to the Budget Code introduced a complex and entails drastic changes of finance redistribution. The country introduced new ways of interaction between central and local budgets, which stimulate the local authorities to increase the revenue base. The authorities in the field get more rights and autonomy in budgetary matters, more sources of financial revenue. Plus of social spending, such as health care finance and education, the state assumes in the form of grants. We introduce a system of financial compensation instead of the total balance. Local councils will represent independent community, who will decide their financial problems.
Viktoria Popova said that the number of mandatory taxes decreased, while there were payment for land, property, transport fee. They go to local budgets. Turnover for the sale of excise taxes go to local budgets too. Its rate – 5%.
Galina Markovich said that additional resources to the local budget will be 45 billion UAH in whole Ukraine. Redistribution of income units will add 22.4 billion UAH. 60% of local expenditures will be funded by state grants. After the program functions and responsibilities of local authorities will be backed by financial resources.