As it is evidenced by the financial decentralisation monitoring over 11 months of 2017, own revenues of local budgets of 366 amalgamated hromadas increased by UAH 3.8 billion (84.4%) and amounted to UAH 8.3 billion.
Yanina Kazyuk, financial decentralisation coordinator of the Central Reform Office under MinRegion, informed that 264 out of 366 budgets of amalgamated hromadas (or 72%) exceeded their annual target indicators.
She reminded that 207 hromadas moved to direct interbudgetary relations with the state budget in 2017. Their own resources, in comparison with the same period of last year, increased by 2.8 times and amounted to UAH 4.4 billion (+UAH 2.8 billion).
The first 159 established amalgamated hromadas switched to direct interbudgetary relations with the state budget in 2016. The growth rate of their own revenues in January-November 2017 was +33.3% (+UAH 978.4 million), that is higher than the average index throughout Ukraine (the rate of own revenues growth in the local budgets of Ukraine is 31.5%).
Based on the calculation per capita, the average own revenues indicator per amalgamated hromada resident increased by UAH 1225.1 and amounted to UAH 2676.8.
Taking into account interbudgetary transfers from the state budget, the revenues of the general fund of local budgets of 366 AHs make up UAH 26.1 billion.
The expert considers financial decentralisation to be one of the tools the Government provided to local self-governments in order to develop their territories. By providing substantial funds to local self-governments, namely amalgamated hromadas, the Government also delegated part of the powers to local councils.
“Responsibility for the decisions taken, for the effective exercise of powers and rational use of budget funds is an integral part of the authority and resources received by local self-governments. Today, local self-government bodies should use financial decentralisation as an instrument for developing local productive potential and added value creation. It is the only way for the reform to ensure sustainable local economic development,” commented Yanina Kazyuk.
Receipt of own resources of all 366 AHs over January-November 2017 in comparison with the similar period of 2016:
in total – UAH 8,3 billion (an increase by 84.4% or UAH 3.8 billion), in particular:
personal income tax was received in the amount of UAH 4.6 billion (3 times increase or UAH 3.0 billion);
land payment – UAH 1.3 billion (increase by 20.2% or by UAH 216.4 million);
single tax – UAH 1.3 billion (increase by 36.3% or by UAH 349.9 million);
excise tax – UAH 728.9 million (increase by 11.2% or UAH 73.2 million);
real estate tax – UAH 126.7 million (increase by 72.4% or UAH 53.2 million).
Receipt of own resources of local budgets of 159 AHs over January-November 2017 in comparison with the similar period of 2016:
in total – UAH 3.9 billion (increase by 33.3% or by UAH 978.4 million), in particular:
personal income tax was received in the amount of UAH 2.2 billion (increase by 40.8%);
land payment – UAH 602.4 million (increase by 17.2%);
excise tax – UAH 382.7 million (increase by 12.4%);
single tax – UAH 567.9 million (increase of 36.1%).
real estate tax – 57.8 million UAH (increase by 69.4%).
Receipt of own resources of local budgets of 207 AHs over January-November 2017 in comparison with the similar period of 2016:
in total – UAH 4.4 billion (increase by almost 2.8 times or by UAH 2.8 billion), in particular:
personal income tax was received in the amount of UAH 2.4 billion;
land payment – UAH 686.0 million (increase by 22.9%);
excise tax – UAH 346.2 million (increase by 10.0%);
single tax – UAH 746.4 million (increase by 36.4%).
real estate tax – UAH 68.9 million (increase by 75.0%).
Note. The information is based on the official data of the Ministry of Finance of Ukraine, following the performance of local budget indicators of AHs, prior to their voluntary accession to amalgamated hromadas, and after voluntary amalgamation of hromadas and acquisition of the right for direct interbudgetary relations with the state budget.
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