Prime Minister of
Ukraine Volodymyr Groysman believes ineffective agreements on the distribution
of powers between the central and regional authorities and advocates the
development of partnerships using the possibilities of fiscal decentralization,
Volodymyr Groysman said this opening a Government’s meeting on Wednesday, 8
Minister recalled his own experience of signing regional agreements with the
Government, which has proved to be ineffective. "I remember initiative of such
agreements in 2008 or 2009, when the Government concluded agreements with the
regions. Do you know the result? The procedure of signing. I was one of those
who signed such a regional agreement. Hot air. A lot of promises, but everything
remains in Kyiv, nobody gave any money," he stressed.
Instead, today revenues
to local budgets have significantly increased due to the launched fiscal
decentralization, Volodymyr Groysman reminded. "Today, tens of billions have
been handed to the local level. You do not need any agreements, funds are already
on the ground. You just have to use them skillfully, while the state will help
and support you," he noted.
Minister urged the local authorities to build up partnerships with the central
government. In turn, the Government will continue the transfer of authority to
the local level, he pointed out.
Minister assured that the Government would keep bolstering the local government
and decentralization and asked the local authorities to be efficient as people
are looking forward to changes.
According to him,
the decentralization reform, launched in 2014, as well as fiscal
decentralization and the transfer of powers to the bottom have already shown
So, for 5 years the
general fund of local budgets has received almost UAH54 billion as a result of
fiscal decentralization. This is about 17 billion more compared to the same
period last year, the Prime Minister informed. "In fact, our growth rate
makes up about 50%. What does this mean? It means that these funds should be directed
to the quality of life of people in the regions, including roads, clinics,
stadiums, schools and kindergartens. We have enough money," said Volodymyr
The Prime Minister also noted effectiveness
of the voluntary association of communities. Thus, the general fund of local
budgets of integrated local communities taking into account government
transfers in 2016 has increased by almost 5 times, and their revenues - 2
citizen, every resident of the village, town, city, district, if you see road
repairs, a new school, a new hospital and a new clinic, a new garden, a new
boiler – these are the results of decentralization," said Volodymyr
Groysman. He also urged the local authorities to talk about the achievements of
Minister reminded that the State Regional Development Fund of Ukraine would
allocate UAH3 billion to local communities as well as the resources of the Socio-Economic
Development Fund. "Because of the decentralization the local authorities
have funds at the regional level and at the district level as well as at the
community level," he stressed.
"This is energy
efficiency, this is a lot of economic things to be done for people, including for
the development of the local economy," noted Volodymyr Groysman and added
that the regions possess enough resources to ensure, in particular, the
construction of new plants. He also urged the local authorities to promote the creation
of new job and legalization of wages.
Groysman emphasized the need to change approaches of the local authorities to the
effective use of these resources.
"If earlier tens
of billions were concentrated in the central budget of the Ministries, today
these tens of billions are in your local budgets. Show how effective you are,
how competitive and give the result. What would we like to see? I emphasize:
new roads, new sidewalks, efficient environment. Everything is real and possible,"
underlined Volodymyr Groysman.
local authorities should be controlled by society and use budgetary
"These resources belong not to city councils, but to communities, people.
It is most crucial that mayors, executive committees, councils be accountable
to and under the control of people, clearly articulate on what these funds to
be spent," he noted.
Groysman stressed that decentralization is one of the key reforms in Ukraine, which
should be continued and needs a new impetus. The Prime Minister pointed out that
the decentralization reform was aimed at a few things: independence of
financial base and transfer of powers, of course, under the state and public control,
and provision of qualitative services [by the State].