Decentralization to allocate UAH 45 bln to local budgets in 2015, says finance minister

14:17, 13.01.2015 1 min read

Amendments to the Budget and Tax Codes passed in late 2014, and the devolution of some taxes and duties to local budgets, will allow them to receive an additional UAH 45 billion in 2015, Ukrainian Finance Minister Natalie Jaresko has said.

"The Budget Code has the new system of inter-budget relations and first sprouts of decentralization. The government has given a large resource to local budgets while increasing its responsibility for expenses and introduces a mild stimulation towards creating effective communities," she wrote on her Facebook page on Tuesday.

Jaresko said that the government has devolved 10% of company profit tax, 100% of state dues, 100% of fees for the provision of administrative services, and 80% of ecological tax to local budgets, as well as new duties – excise duty, 25% of deposit royalties, property tax (commercial property, passengers cars with engines over 3,000 cubic centimeters), single tax and profit tax of municipal companies and local duties.