Money has to follow the powers but not vise versa. Issues of dividing the government agencies’ powers locally are being discussed

In October of 2020 the local election will be held, based on the new hromadas and rayons. As soon as next year all hromadas, regardless of their being village, settlement or city ones, must enjoy equal powers and resource sources, thus it is necessary to pass new statutory wording of the basic laws.

It was highlighted by Vyacheslav Nehoda, Deputy Minister of Development of Communities and Territories of Ukraine, during a video-conference, dedicated to dividing the local self- government bodies’ powers while preparing bills On the Local Self-Government in Ukraine and On the Local State Administrations.

14.05.2020 - 14:02 | Views: 9548
Money has to follow the powers but not vise versa. Issues of dividing the government agencies’ powers locally are being discussed


V.Nehoda Vira Kozina


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17.05.2020 - 09:10
This opinion that authority should first be defined and then finances will follow is one of the myths of fiscal decentralization and has never worked in practice. The two never match and in general practice this is impossible to do. Why? Because costing these functions is not possible. I have long supported the concept that "functions evolve from finance." That is as the financial resources of the local units are defined and the growth established, they can take on more functions. Defining functions first only creates a period where the local governments cannot finance these on an economical or service quality basis and greater inequities are created and more dependence on the central level finance follows. Ukraine is already a good example of this false premise that "finance follows functions." Will never work.
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