Financial Decentralisation in Action: + UAH 11.4 Billion to the Earned Revenues of Local Budgets in the 1st Quarter

Plus UAH 11.4 billion to the earned revenues of local budgets making UAH 41.6 billion in total - those are the results of the financial decentralisation in the 1st quarter of 2017. In comparison with the same period in the previous year, the increase totals 38%. Those data were presented by Ms. Yanina Kaziuk, Financial Decentralisation Coordinator at the Central Office for Reforms (operating with the assistance of the U-LEAD Programme) at the Ministry of Regional Development).

Also, she distinguished the financial results of local budgets of the amalgamated territorial communities, 159 of which were established in 2015, and 207, in 2016.

Ms. Yanina Kaziuk gave the data proving that the own resources of local budgets of the 159 amalgamated territorial communities (those communities started their direct inter-budgetary relations from 1 January 2016) increased by 49.7% or by UAH 302 million and totalled UAH 910 billion.

Whereas, the own resources of local budgets of 207 amalgamated territorial communities (those communities started their direct inter-budgetary relations from 1 January 2017) increased by 3.2 times (+ UAH 681 million) and totalled UAH 994 billion. In view of the transfers from the state budget, the revenues of the general fund of local budgets of the 207 amalgamated territorial communities totalled UAH 2.2 billion, that is, by 7 times more in comparison with the revenues of the budgets of local councils in the 1st quarter of 2016, which councils merged in the amalgamated territorial communities. 

"That is an upward trend in the increase of local budget volumes in 2017 and those are good results for the beginning of a budget period. Just look at the results of the last year - the financial decentralisation and, as a result of it, the increase of local budgets offered an opportunity to implement more than 2 thousand various projects at the local level - from the repair of social infrastructure buildings to the construction of new roadways. And all that is done now, not in the future", Ms. Yanina Kaziuk commented.

Reference information

The influx of own resources of all local budgets in the 1st quarter of 2017, in comparison with the same period of 2016:

in total - UAH 41.6 billion (an increase of 38% or by UAH 11.4 billion), in particular: 

personal income tax totalled UAH 22.7 billion (an increase of 43% or by UAH 7 billion);

land use fee totalled UAH 6 billion (an increase of 21% or by UAH 1 billion);

flat-rate tax totalled UAH 5.5 billion (an increase of 55% or by UAH 2 billion);

immovable property tax totalled UAH 0.4 billion (an increase of 57%).

The influx of own resources of local budgets of the 159 amalgamated territorial communities in the 1st quarter of 2017, in comparison with the same period of 2016:

in total - UAH 910 million, (an increase of 49.7% or by UAH 302 billion), in particular:

personal income tax totalled UAH 494.5 million (an increase of 50%);

land use fee totalled UAH 137 million (an increase of 22%).

excise tax totalled UAH 103 million (an increase of 52%);

flat rate tax totalled UAH 136.6 million (an increase of 83%).

In view of the transfers from the state budget, the revenues of the general fund of local budgets of the 159 amalgamated territorial communities totalled UAH 1.8 billion in the 1st quarter of 2017.

The influx of own resources of local budgets of the 207 amalgamated territorial communities in the 1st quarter of 2017, in comparison with the same period of 2016:

in total - UAH 994 million (an increase of 49.7% or by UAH 681 billion), in particular:

personal income tax totalled UAH 527 million;

land use fee totalled UAH 151.5 million (an increase of 23%).

excise tax totalled UAH 95 million (an increase of 61%);

flat rate tax totalled UAH 174 million (an increase of 72%).

Source:

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