Mykola Tomenko: The Principle of Equity will underlie Formation of Local Budgets since 1 January 2010
Mykola Tomenko, Vice-Chairman of The Verkhovna Rada of Ukraine, positively assesses the yesterday´s adoption of the Law "On Amendments to the Budget Code of Ukraine" by the Parliament. He made the above-mentioned statement at the briefing at The Verkhovna Rada.
According to M.Tomenko, "this is a truly reformative Bill, as the Constitutional regulation, pursuant to which a village, a settlement and a city are the basis of a local self-government, will be implemented in 2010 for the first time".
The Vice-Chairman reminded of the fact that formation of the local budgets was currently grounded on the subjective principles, when the leaders of regional and district administrations determined the amount of the budget due to their likes of dislikes of village, settlement and city mayors.
"A new formula-based fair approach will appertain to more than 12 000 budgets, which means that the revenue and expenditures of the local budgets will be calculated on the grounds of fixed indices, and the factor of subjectivism or corruption disappears. On the one hand, it makes all the subjects of the local self-government equal, on the other hand it gives incentives for the leaders of the local self-government to act more actively and overfulfil the local budgets", - stated M.Tomenko.
The Vice-Chairman stressed that a new Budget Code envisaged extension of the local budgets revenue and supplements the list of its elements, which defines the status of a village, settlement or a city as a local self-government body.