PM says due to fiscal decentralization local budget revenues increased by 35%

Despite the difficult economic situation, the Government is funding 100% of the expenses of local budgets for the first time since 2010. Due to fiscal decentralization, local budget revenues increased by 35%, Prime Minister of Ukraine Arseniy Yatsenyuk emphasized during an hour of questions to the Government at the Verkhovna Rada of Ukraine on Friday, April 24.

Arseniy Yatsenyuk reminded that a few months ago there was "quite serious but groundless criticism" regarding the adopted laws on decentralization - amendments to tax and budget legislation.

However, the PM stressed that there is a result three months after the adoption of these laws: "If we compare Q1of this year and Q1 of the past - local budget revenues increased by 35%."

"We are financing 100% of all local budget expenditures. This has not happened since 2010. Despite the fact that the economic and financial situation is quite complicated - local budgets have increased by 35%. This is a consequence of fiscal decentralization," he highlighted.

In order to continue a proper pace, according to Arseniy Yatsenyuk, it is necessary to carry out administrative and political decentralization: "The decision of the President and Parliament on the establishment of the Constitutional Commission should be an essential step towards real empowerment of local authorities and local governments."

"Excessive concentration of functions in the city of Kyiv does not allow the country to develop. So, with the transfer of responsibility we should transfer rights and vice versa - with the transfer of resources it is necessary to transfer objects subject to be financed. Local authorities should be aware that they have sufficient financial resources, but in addition to that a significant responsibility for everything that happens in their district, village, city and region," the Prime Minister stressed.