Local budgets have been increased significantly due to the decentralization reform and their revenues have exceeded expenditures, as stated by President Petro Poroshenko.
“We’ve chosen the right course. As of September 1, local budgets' surplus equals UAH 32 billion. The plan of revenues of the general fund of local budgets, excluding transfers, has been fulfilled almost by 100% in 9 months,” the Head of State informed at the Regional Development Council’s session.
Petro Poroshenko emphasized that in comparison with the previous year, the revenues of local budgets had been increased by 50% and the lion's share of those funds was allocated for the development budget. “This is what we’ve been dreaming about 2 years ago,” the Head of State stressed. Thus, we are building up infrastructure, developing transport network, constructing social facilities – kindergartens, schools etc. They are often opened in remote areas, as stated by the President.
Moreover, the Head of State noted that due to the increase of the communities’ budgets and implementation of the experiment on the allocation of a part of the exceeded revenues from customs, roads in regions and cities were being restored.
“Our approach demonstrates that road construction has now become a priority of the Government, local administrations, President and the entire Ukrainian authorities,” Petro Poroshenko said. “This is done in war conditions,” he reminded.
The President informed that the government intended to continue that trend in the future. "We are not going to stop. The road fund of the past year and the road fund of this year differ significantly," the Head of State emphasized.
Petro Poroshenko also noted the increase of local budgets in all types of taxes. According to him, this is the evidence of greater efficiency in their administration and unshadowing of taxes. According to him, for example, the land revenue grew by 62% and the revenue from the personal income tax grew by 49%.
At the same time, the President is not fully content with the legalization of wages. “We’ve made a very difficult decision reducing the unified social tax significantly,” he said. According to the Head of State, the government expected business to increase wages at the cost of the economy from the reduction of tax burden on wages. However, so far, salary increases do not exceed those savings in most cases. “But the process is already underway and I am confident that we can bring this situation to a successful conclusion,” the President emphasized.
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