Today, the Verkhovna Rada of Ukraine took an important step in supporting communities and adopted Draft Law No. 4380, ‘On Administrative Fees’, as a basis. 

Decentralisation is not just about transferring powers; it is also about having the financial capacity to implement them. Draft Law No. 4380 is a step towards providing systematic support for Administrative Service Centres and strengthening community capacity during the most challenging of times. Its purpose is to preserve a system that gives Ukrainians access to services and to support those who improve community life every day.

Why is this important?

The network of Administrative Service Centres in Ukraine has been in development for over 10 years. However, they are currently at risk of closure due to systemic financial difficulties. While most services provided by the ASCs are free of charge, those that require payment cost a minimal amount, which is insufficient to maintain the centres.

Administrative services encompass more than just documents and signatures. They also involve purchasing materials, maintaining equipment, paying utilities bills, paying salaries to administrators and providing secure communications and software. All this has to be done in wartime, when local budgets are struggling to survive. Currently, administrative fees cover only around 30% of ASC costs.

Consequences without change

The current situation is leading to a natural optimisation of the system — a reduction in staff and services, and therefore in accessibility for citizens. Without adequate funding, ASCs risk becoming empty premises, and citizens risk having to travel miles for basic services.

What does Draft Law No. 4380 propose?

The document defines 150 basic administrative services, most of which are proposed to incur a charge — albeit a moderate and fair one. Social services, which account for around 50% of all ASC services, will remain free of charge.

Support and challenges

The draft law is supported by all the leading Ukrainian associations of local governments, as well as associations of administrative service centres, public organisations and even some ministries.

However, preparations are now underway for the second reading, in which it will be crucial to prioritise a state-oriented approach over populism.