The results of the implementation of the budgets for the first half of 2017 show that as a result of the “decentralization” reform, the regional centers and villages have become poorer. According to the MP from the OPPOSITION BLOC Serhiy Lovochkin, the powers transferred from the central government to the local ones are underfinanced by UAH 70 billion.

“The goal of decentralization is to improve people’s lives in all regions. If we proceed from the data on the implementation of local budgets for the first half of 2017, the achievement of this goal has only faded away. Cities of regional importance, villages and settlements, having lost 25% of the income tax, became poorer. A typical example: 85% of local budget deposits are concentrated on accounts of only 20 cities ­– that is, 6% of territorial communities. The remaining 94% of the communities account for only 15% of the deposited funds of local budgets,” Serhiy Lovochkin said.

According to the deputy, overall revenues of local budgets have increased, but 51% of growth is an increase in income from income tax, 11% - from a single tax on small business. That is, the new sources of income that emerged as a result of the reforms did not help the regions significantly.

At the same time, the number of expenditure items increases every year. Benefits for low-income citizens, culture, a large part of the costs of education and healthcare are transferred on local budgets.

“According to the experts of the OPPOSITION BLOC, the volume of unprofited powers of the regional authorities is UAH 70 billion. This is the reason that hospitals are being closed, the number of educational institutions is decreasing, privileges are not financed for various categories of citizens,” the politician said.

“According to the results of the poll of the Razumkov Center, 68% citizens haven’t noticed the improvement in the social and economic situation in their region. This is an assessment of the “reform” carried out by the authorities. The OPPOSITION BLOC believes, it is necessary to return to the draft constitutional amendments, which must be reworked so that the regions have not only responsibilities, but also real rights,” Serhiy Lovochkin stated.

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