The Verkhovna Rada registered draft law No 8213 "On Amendments to Article 10 of the Law of Ukraine “On Voluntary Amalgamation of Hromadas” regarding the financial support of the voluntary amalgamation of hromadas of villages, settlements, cities by the state”, elaborated by MinRegion and establishing a guaranteed minimum size of the state subvention to form the infrastructure of AHs.
The draft law specifically states that the subvention for 2019 and subsequent years is allocated between the budgets of AHs in proportion to the area of the territory and the number of rural population in the hromada, with an annual 20% decrease of the amount of such financial support per one villager.
"Amalgamated hromadas need to plan their development effectively. However, the current model of allocation of infrastructure subvention does not give them such an opportunity. Hromadas do not know how much of state support will be guaranteed in the coming years, because it depends on the number of AHs formed during the year and the total amount provided for the subvention in the state budget. Establishment of a state-guaranteed minimum size of infrastructure subvention will enable hromadas to plan their budgets and use funds more efficiently," said Vyacheslav Nehoda, First Deputy Minister of Regional Development, Construction, Housing and Communal Services.
It is assumed that the state will provide AHs with infrastructure subvention in the course of five years since their formation.
The total amount of subvention is determined by the State Budget of Ukraine and allocated by the Cabinet of Ministers of Ukraine in coordination with the Verkhovna Rada Committee on Budget.
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