The law on amendments to the Budget Code of Ukraine stipulating for the improvement of the preparation and implementation of budgets will ensure the development of the country’s economy, the continuation of decentralization process and raising the minimum wage in the country. This was stated by Prime Minister of Ukraine Volodymyr Groysman on the results of the adoption of Law No. 5131 "On amendments to the Budget Code of Ukraine (on improvement of budget compilation and execution)" at a plenary meeting of the Verkhovna Rada of Ukraine on Tuesday.
"This law will give an opportunity to trigger a real development of economy in our state. This is a professional law, which we’ve jointly prepared", said the Head of Government, welcoming the approval of the bill by MPs.
"This act opens up chances, in particular, to increase minimum wages in the country," stressed Volodymyr Groysman informed during consideration of the bill.
He noted that in 2017 the Government had planned to up salaries, notably for healthcare sector employees and teaching staff of educational institutions.
Thus, wages for doctors in 2017 will grow by no less than 36%, while wages for Ukrainian teachers – by 49.6%. "The Ukrainian teacher will get from UAH 1672 UAH up to UAH 2140 additionally. This means financial decentralization and social justice," stressed the Prime Minister.
A pay increase was made possible after budget expenditures were distributed on competences within responsibility of different levels of government: local government finances infrastructure spending, the central government - medical services and wages, emphasized the Head of Government.
In addition, provided by the law "remedies will allow the country's fiscal decentralization and ensure success", said Volodymyr Groysman.
The Prime Minister cited figures showing an increase in local budgets. Thus, the financial resource of local budgets for 2017 will make up UAH 424 billion. As compared to 2016, the growth will amount UAH 86 billion, or+28%. As compared to 2015 the local budgets will improve their performance by UAH 132 billion, or +45%. The estimated amount of revenues of local budgets for 2017 makes up UAH 185 billion, which exceeds by 25% the figures of the current year and by 153% as compared to 2015, explained Volodymyr Groysman.
At that, in many cities of the country a considerable amount of funds received in their budgets as a result of financial decentralization are on deposit accounts, the Head of the Government noted. Thus, the volume of funds in the deposits are as follows, namely: Zaporizhzhia - UAH 724 million, Kharkiv – UAH 520 million, Lviv – UAH 496 million, Vinnytsia – UAH 270 million, Mykolayiv - UAH 300 million, Bila Tserkva - about UAH 100 million. The Prime Minister added commenting on the devolution of authority to these areas – and they possess sufficient resource – to finance communal and utility services, energy carriers for healthcare institutions, educational institutions, payroll and other expenditures for maintenance of the aforesaid institutions.
The Prime Minister stressed that the Government had envisaged UAH 14.9 billion subventions for budgeting the delegated expenditures to ensure maintenance of educational and healthcare institutions to support the territorial communities that might face budget deficiency.
Besides, an assistance worth UAH 9 billion was planned to support regional development.