11:27 06.12.2017

Local authorities should stop seeking funds through central budget cuts, develop local economy - PM

Local authorities should stop seeking funds through central budget cuts, develop local economy - PM

Ukrainian Prime Minister Volodymyr Groysman has said that local authorities should stop attempting to earn via cutting the central budget and focus on development of the economy in the regions.

"It is important to stop attempting to earn via the reduction of the central budget… The central budget has its own huge problems," he said on Channel 5 TV on Monday.

The prime minister said that the central budget finances a large number of programs: road repair, armed forces support, educational and healthcare reforms and other things.

"Saying that something should be taken from the central budget is at least a reckless move. You should earn not via taking something from somebody, but via the development of the national economy," he said.

The prime minister said that most local self-government leaders understands the necessity of developing their territories, in particular the economy, which would allow boosting revenue of local budgets.

He said that it is planned to set a ratio of 40% to 60% for distributing personal income tax between the central and local budgets for 2018.

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