The Deputy Chairman of the Verkhovna Rada of Ukraine Ruslan Koshulynskyi referred the draft law of Ukraine to amend the Budget Code of Ukraine (re maintenance of local budgets by revenues and expenditures that are not included while determining the amount of inter-budget transfers and the revenues and expenditures of special fund) (Reg. No. 2283 of 12.02.2013) to the heads of district and regional administrations for discussion. The bill was registered jointly with the people’s deputies Yu.Mykhalchyshyn and A.Ilyenko.
R.Koshulynskyi reminded that he has recently suggested regional and city councils start the joint work over elaboration of draft laws aiming at settlement of topical issues of the Ukrainian society. The politician believes that constant discussion with local community “is a necessary precondition for elaboration of effective laws”.
R.Koshulynskyi said that he has referred his draft law regarding settling the issue of retail sails of alcoholic beverages, beer and tobacco products for consideration by local communities. He has already started receiving suggestions and wishes from the bodies of local government regarding improvement of the abovementioned document.
Instead, speaking on the bill suggested for discussion this time, R.Koshulynskyi reminded that Ukraine has ratified the European Charter of Local Self-Government in 1997 and, thus, has committed itself to providing communities with real economic mechanisms to settle local problems.
At the same time, he stated that the key problems in developing local self government today are lack of income basis and impossibility of local budgets to fully finance execution of their authorities. The politician has emphasized that the situation has been worsened lately by incapability of the State Treasury Service of Ukraine to systematically and timely maintain local budget expenditures. “As a result, problems of territorial communities remain unsettled even in the presence of sufficient financial resources on accounts,” he summed.
R.Koshulynskyi informed that the bill suggested stipulates establishment of financial independence limits in the part of revenues and expenditures that are not included while determining the amount of inter-budget transfers. According to the Deputy Chairman of the Verkhovna Rada, the draft law provides local councils with a possibility to independently choose the state financial institution that will maintain local budgets.
The Deputy Chairman of the Verkhovna Rada noted that in order to realize the abovementioned suggestions the Government has to develop a clear maintenance procedure of local budgets by revenues and expenditures in the state banks. “This shall coordinate and simplify relations between the bodies of the State Treasure Service of Ukraine, state banks, local financial bodies and budgetary institutions in the part of control over payout and enrolment of the local budget revenues,” he stressed.
R.Koshulynskyi asked the chairmen of local authorities to consider the suggested bill for compliance with development of local self government as a factor of independence of a territorial community, and make their suggestions.
Summing up, the politician expressed hope that his joint work with the bodies of local authorities over this any future bills will promote development of national legislation and shall be useful for the community.