Arseniy Yatsenyuk appeals to RSA heads to expedite the approval of local budgets

Economic decentralization, the new Budget and Tax Code is a rod, while an objective for the local authorities is to catch fish and to allow the regions to be stronger and get more funds", said Prime Minister of Ukraine Arseniy Yatsenyuk on Tuesday, January 13, during a teleconference with heads of regional state administrations.

Arseniy Yatsenyuk stressed that Ukraine had made the first step towards decentralization: "The first step, which is within the responsibility of the Cabinet of Ministers of Ukraine, - the provision of additional financial authority to the regions, has been carried out. The Government submitted to the Parliament and the Parliament supported a number of our tax and budget initiatives.

In particular, a new version of the Budget Code was approved: "Now the territories are actually independent from state budget". According to the Head of the Government, the regions now “have the right to independently, without approval of the Central budget, adopt their local budgets”.

Due to the changes in the Budget Code the local authorities were provided with a number of additional powers. In particular, he reminded, there were abolished restrictions on borrowing, that previously could be done only on receiving permission of the Central Government, and also introduced a new procedure of using funds, those on the treasury single account.

The Prime Minister appealed to the heads of the regions "to accelerate the process and promptly approve local budgets".

Arseniy Yatsenyuk noted that Kyiv region "is the only in Ukraine which already on 29 December independently decided on the formation of the budget of Kyiv region and the budgets of lower levels”.

Arseniy Yatsenyuk continued that the next step of decentralization, which is political decentralization, "lies within the competence of the President of Ukraine, and amendments to the Constitution regarding the devolving of additional political authority to the local level is what is presently on the agenda of the President and the Government".

At the same time, according to the PM, political decentralization will be influenced, in particular, by how local authorities “will cope with additional powers and rights, it obtained in the economic and taxation areas."

"I ask the local government to pay maximum attention to this and demonstrate that we are capable to assume responsibility and to truly independently rule over our regions, not waiting for the command from above," said the Head of Government.

"We have given the rod, and your task is, by using this rod in the shape of a new Budget Code and a new Tax Code, to catch fish and to allow your regions to be better and stronger, to get more money. And you should now rely on your powers and your resource," said the PM addressing the RSA heads.