decentralization, the new Budget and Tax Code is a rod, while an objective for the
local authorities is to catch fish and to allow the regions to be stronger and
get more funds", said Prime Minister of Ukraine Arseniy Yatsenyuk on
Tuesday, January 13, during a teleconference with heads of regional state
stressed that Ukraine had made the first step towards decentralization: "The
first step, which is within the responsibility of the Cabinet of Ministers of
Ukraine, - the provision of additional financial authority to the regions, has
been carried out. The Government submitted to the Parliament and the Parliament
supported a number of our tax and budget initiatives.
In particular, a new
version of the Budget Code was approved: "Now the territories are actually
independent from state budget". According to the Head of the Government, the
regions now “have the right to independently, without approval of the Central
budget, adopt their local budgets”.
Due to the changes in
the Budget Code the local authorities were provided with a number of additional
powers. In particular, he reminded, there were abolished restrictions on borrowing, that previously could be done only on receiving
permission of the Central Government, and also introduced a new procedure of
using funds, those on the treasury single account.
The Prime Minister
appealed to the heads of the regions "to accelerate the process and
promptly approve local budgets".
noted that Kyiv region "is the only in Ukraine which already on 29
December independently decided on the formation of the budget of Kyiv region
and the budgets of lower levels”.
Arseniy Yatsenyuk continued
that the next step of decentralization, which is political decentralization, "lies
within the competence of the President of Ukraine, and amendments to the
Constitution regarding the devolving of additional political authority to the
local level is what is presently on the agenda of the President and the
At the same time, according
to the PM, political decentralization will be influenced, in particular, by how
local authorities “will cope with additional powers and rights, it obtained in
the economic and taxation areas."
"I ask the local
government to pay maximum attention to this and demonstrate that we are capable
to assume responsibility and to truly independently rule over our regions, not
waiting for the command from above," said the Head of Government.
"We have given
the rod, and your task is, by using this rod in the shape of a new Budget Code
and a new Tax Code, to catch fish and to allow your regions to be better and
stronger, to get more money. And you should now rely on your powers and your
resource," said the PM addressing the RSA heads.