Budget process is on. What are project norms proposed to AHs?

How will be local self-government development, in particular, amalgamated hromadas, financially supported in future? According to MinRegion, this issue is under consideration of local self-government associations, as well as international technical assistance projects and programmes within the framework of the Donor Board under the Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine.

Pursuant to the Ministry, proposals have been prepared by 3 areas:

  • to the draft State Budget for 2019
  • changes to the budget and tax legislation that affect the formation of indicators of the draft State Budget for 2019
  • changes to the budget, tax and other legislation aimed at supporting local self-government development and increasing their capability to effectively manage budget resources, while not affecting the formation of indicators of the State Budget for 2019

The proposals for the draft State Budget for 2019 envisage UAH 4.5 billion of subvention for the formation of the AH infrastructure. This amount of money was calculated based on the number of formed AHs. There are 828 of them as of the end of August 2018, of which:

665 AHs – have switched to direct interbudgetary relations this year and during last years;

40 AHs – conducted their first local elections on 29.04.2018;

123 AHs – are waiting for the decision of the CEC to appoint the first elections this year.

It is proposed to distribute UAH 4.5 billion of infrastructure subvention among the AHs’ budgets in proportion to the AHs’ area and the number of rural population there, with equal weight of both of these factors and taking into account the reduction of such preciously received financial support to AHs.

Another important point is the forecasting of direct interbudgetary relations with all the formed AHs, where the first local elections took place in 2018.

In addition, the authors of the norms propose to provide a differentiated approach to the educational subvention, taking into account the accession to the cities of oblast significance.

The full version is available in Ukrainian – please click HERE

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