The law on amendments to the Budget Code of Ukraine
stipulating for the improvement of the preparation and implementation of
budgets will ensure the development of the country’s economy, the continuation
of decentralization process and raising the minimum wage in the country. This
was stated by Prime Minister of Ukraine Volodymyr Groysman on the results of
the adoption of Law No. 5131 "On amendments to the Budget Code of Ukraine
(on improvement of budget compilation and execution)" at a plenary meeting
of the Verkhovna Rada of Ukraine on Tuesday.
"This law will give an opportunity to trigger a real
development of economy in our state. This is a professional law, which we’ve
jointly prepared", said the Head of Government, welcoming the approval of the
bill by MPs.
"This act opens up chances, in particular, to increase
minimum wages in the country," stressed Volodymyr Groysman informed during
consideration of the bill.
He noted that
in 2017 the Government had planned to up salaries, notably for healthcare
sector employees and teaching staff of educational institutions.
for doctors in 2017 will grow by no less than 36%, while wages for Ukrainian
teachers – by 49.6%. "The Ukrainian teacher will get from UAH 1672 UAH up
to UAH 2140 additionally. This means financial decentralization and social
justice," stressed the Prime Minister.
increase was made possible after budget expenditures were distributed on
competences within responsibility of different levels of government: local
government finances infrastructure spending, the central government - medical
services and wages, emphasized the Head of Government.
addition, provided by the law "remedies will allow the country's fiscal
decentralization and ensure success", said Volodymyr Groysman.
Minister cited figures showing an increase in local budgets. Thus, the
financial resource of local budgets for 2017 will make up UAH 424 billion. As
compared to 2016, the growth will amount UAH 86 billion, or+28%. As compared to
2015 the local budgets will improve their performance by UAH 132 billion, or
+45%. The estimated amount of revenues of local budgets for 2017 makes up UAH
185 billion, which exceeds by 25% the figures of the current year and by 153%
as compared to 2015, explained Volodymyr Groysman.
At that, in many cities of the country a considerable amount
of funds received in their budgets as a result of financial decentralization
are on deposit accounts, the Head of the Government noted. Thus, the volume of
funds in the deposits are as follows, namely: Zaporizhzhia
- UAH 724 million, Kharkiv – UAH 520 million, Lviv –
UAH 496 million, Vinnytsia – UAH 270 million, Mykolayiv - UAH 300 million, Bila Tserkva - about UAH 100
million. The Prime Minister added commenting on the devolution of authority to
these areas – and they possess sufficient resource – to finance communal and
utility services, energy carriers for healthcare institutions, educational
institutions, payroll and other expenditures for maintenance of the aforesaid
The Prime Minister stressed that the Government had
envisaged UAH 14.9 billion subventions for budgeting the delegated expenditures
to ensure maintenance of educational and healthcare institutions to support the
territorial communities that might face budget deficiency.
Besides, an assistance worth UAH 9
billion was planned to support regional development.