Despite the tough economic situation, for the first time since 2010 the government has funded 100% of local authorities’ expenditure. Owing to fiscal decentralization, the local authorities’ revenue has increased by 35%, said Prime Minister of Ukraine Arseny Yatseniuk during the «hour of questions to the government» at the Verkhovna Rada of Ukraine on Friday, April 24, 2015.

The Prime Minister added that a few months ago laws on decentralization – updates to the tax and budget legislation, came in for «sharp but unfounded criticism».

However, the head of the Government said that the positive effects became obvious three months after adoption of these laws: «Comparing the first quarter of this year to the same period a year ago, local budget revenue has increased by 35%.»

«We are financing 100% of local government spending. This has not happened since 2010. Despite the fact that the economic and financial hardship we have an increment of 35% in the local budget. This is the consequence of fiscal decentralization», - he underscored.

Arseny Yatseniuk is of the opinion that in order to continue its pace, we should proceed with administrative and political decentralization: «The decision of the President and Parliament on establishment of the Constitutional Commission should be an important step towards delegating powers to the local authorities and local government”.

«Excessive concentration of powers in Kyiv impedes further development of the country. Thus, if responsibility is handed over, the rights should be also transferred, on the contrary, the transfer of resources should entail handover of objects for financing. Local authorities should acknowledge that sufficient financial resources imply a great deal of responsibility to bear for everything that happens in the neighbourhood, village, city and oblast», - said the Prime-Minister.