UAH 9 Billion from the State Budget will be Channelled to Projects of Strategic Importance to Communities, Viacheslav Nehoda

The 2017 State Budget provides for more than UAH 9 billion to support the sustainable development of regions in Ukraine. The Ministry of Regional Development calls the local authorities to apply those funds for projects of strategic importance to the territories, which projects ensure the sustainable development of communities and enhance their competitiveness in the course of decentralisation.

It was said so by First Deputy Minister of Regional Development, Construction, and Housing and Communal Services of Ukraine Viacheslav Nehoda.

He reminded that there are four main mechanisms of government support for the regional development in 2017:

  • the State Fund for Regional Development - UAH 3.5 billion;
  • the subvention from the state budget to local budgets for the formation of an infrastructure of the amalgamated territorial communities - UAH 1.5 billion;
  • the subvention from the state budget to local budgets for the exercise of the functions pertaining to social and economic development of separate territories - UAH 4.0 billion;
  • the subvention from the state budget to local budgets for the funding of social and economic functions pertaining to the risk remedy to the population residing in the territory of the observation area - UAH 137.5 million.

"The Ministry of Regional Development emphasises that, when allocating those funds by the regions, the priority should be placed on those strategic projects which secure sustainable development of communities, enhance their competitiveness in the course local self-government reform and decentralisation. In particular, those are the projects aimed at the establishment of pivotal schools, health care institutions in line with the model of hospital districts, centres providing modern administrative service, etc., the implementation of which projects will ensure the creation of new jobs, economic and social development of territories", Viacheslav Nehoda noted.

He also informed that in 2017, in accordance with the amendments made to the Budget Code, the regions have to channel 30 % of the resource of the State Fund for Regional Development to the following three areas (10 % for each): for the development of sports infrastructure, energy efficiency of state and municipal educational establishments and health care institutions.

In addition, subject to the amendments made to Resolution No. 196 of the Cabinet of Ministers of Ukraine, dated 18 March 2015, it is provided for that 10% of the resource of the State Fund for Regional Development will be channelled to the development of the network of administrative service centres.

The selection of regional projects and programmes covered by 60 % of the resource of the State Fund for Regional Development shall be carried out in accordance with the procedure established in the legislation.

In this connection, the investment programmes and projects, the implementation period of which is more than one year and which, starting from 2015, are being financed for account of the resources of the State Fund for Regional Development shall be included in the list of investment programmes and projects which are implemented without holding a tender, every year until implemented.

Mr. Viacheslav Nehoda informed that the Ministry of Regional Development had sent letters to Oblast State Administrations and the Kyiv City State Administration regarding the peculiarities of application of funds of the State Budget channelled to support the regional development.

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