Volodymyr Groysman: Amendments to the Budget and Tax Codes provide a mechanism to encourage small communities towards voluntary consolidation

Vice Prime Minister of Ukraine, Minister of Regional Development, Construction, Housing and Utilities Volodymyr Groysman has presented at the X Ukrainian Municipal Forum prospects of obtaining budgetary independence as well as improvement of financial viability that will receive local communities after the adoption of the proposed government changes to the Budget and Tax Codes (relative to fiscal decentralization).

"The bills provide for the decentralization of finances. Today, finances are collecting by central authorities and then they are distributed among local ones. We are destroying this system. We fix a part of national taxes at the community level and provide the natural freedom to local authorities to implement these taxes. If the new Parliament is to adopt it, then from 1 January there will be just such a system," noted during his speech Volodymyr Groysman.

According to him, the bills provide a mechanism to stimulate local communities towards voluntary consolidation: large capable communities and united communities will have a direct relationship with the state budget.

"This so-called principle of more for more, which will allow local communities to unite, have autonomous budgets and be included in a more active economic development," emphasized the Vice Prime Minister.