Financial decentralisation in action – more than half of the total number of local budgets in Ukraine have already fulfilled the annual indicators. It was announced by Hennadii Zubko, Vice Prime Minister – Minister of Regional Development, Construction, Housing and Communal Services.

According to Mr Zubko, during the first 10 months of 2017, the general fund of local budgets received UAH 154.7 billion, which makes up 91.5% of the planned annual allocations approved by the local councils.

The government official stressed that the fulfillment of annual indicators has been already ensured in the Rivne Oblast, while in 17 oblasts the percentage of implementation is over 90 (Kherson – 98.1%, Kyiv Oblast – 98.0%, Ternopil – 97.1%, Volyn – 96.9 %, Poltava – 96.3%, Kirovohrad – 96.2%).

“520 (52.1%) out of 998 local budgets that have direct relationships with the state budget have fulfilled their annual indicators, including 199 budgets of amalgamated hromadas (54.4%)," said Hennadii Zubko.

The increase in revenues compared to the corresponding period of the last year was 31.8% or UAH 37.4 billion. 21 oblasts have the revenue growth rate above the Ukrainian average (the highest rates are in the Ternopil, Vinnytsia, Ivano-Frankivsk, Khmelnytskyi, Kirovohrad, Kherson and Volyn Oblasts).

The Vice Prime Minister noted that local budgets have ensured stable revenue sources and the level of their filling and financial sufficiency entirely depends on the efforts of the local government bodies. Besides, the issue of determining the priority areas for the development of territories and the distribution of budget funds by directions is the exclusive competence of local authorities.

Reference information

The largest surplus is achieved regarding the personal income tax and unified tax, in particular:

- personal income tax – a surplus of 40.7% or UAH 25.0 billion. 18 regions out of 25 had the growth rate above the average in Ukraine. Planned annual indicators are fulfilled by 426 budgets (out of 998);

- unified tax – a surplus of 37.6% or UAH 5.3 billion. 14 regions out of 25 had the growth rate above the average in Ukraine. Planned annual indicators are fulfilled by 682 budgets (out of 974 excluding oblast ones).

There is a tendency of increase on other incomes, for example:

- payment for land - growth of 114.1% or UAH 2.7 billion.  21 regions out of 25 had the growth rate above the average in Ukraine. Planned annual indicators are fulfilled by 482 budgets (out of 974 excluding oblast ones).

- real estate tax – growth of 171.3% or UAH 0.9 billion. 10 regions out of 25 had the growth rate above the average in Ukraine. Planned annual indicators are fulfilled by 823 budgets (out of 974 excluding oblast ones).