On July, 1 the Parliamentary Budget Committee recommended the Verkhovna Rada of Ukraine to adopt in the first reading bill № 3614 On Amending the Budget Code of Ukraine in terms of Harmonising the Budget Legislation Provisions, Related to the Administrative and Territorial Reform Completion.

The bill stipulates independence of village, settlement and town budgets on rayons anymore. All 1470 AHs, the territory of which has been approved by the Government, will turn to direct inter-budget relations with the state budget.

Judging by the bill, incomes and expenditures between budgets of rayons and AHs will be differentiated. It is suggested that rayon budgets should be excluded from the horizontal alignment system. So, rayon budgets won’t receive the basic loan and won’t have direct inter-budget relations with the state budget.