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Local Budgets Do Not Receive Almost UAH 40 Bln – Ex-Minister

Wednesday, 23 March 2016 18:17

According to the Ex-Minister, the actual revenues versus 2014 have significantly decreased.

The share of revenues of local budget in the total amount of revenues of the balanced budget decreased by 5.3%, Klimenko assures.

The Cabinet of Ministers of Ukraine monthly collects from local communities about UAH 3 billion as the individual income tax. However, the “compensators” in the form of excise tax from retail sales, transport tax and real estate tax do not cover even the third of these losses. Such opinion was expressed by the Former Minister of Revenues and Duties of Ukraine Alexander Klimenko, Correspondent reports.

He remembered the recent report of the government on the increase in revenues of local budgets by almost 50% in January-February 2016. And for the whole 2015, according to the government data, the territorial communities earned by UAH 29.6 billion more than in 2014. 

“Unfortunately, this is not more than a regular portion of the populism of authorities and cheap manipulations with the opinion of Ukrainians. The formal increase in revenues of local budgets of government could have been shown exclusively through inflation, significant price and USD exchange rate increase”, - Klimenko explains.

According to the Ex-Minister, the actual revenues versus 2014 significantly decreased. Actually, the share of revenues of local budgets in the total amount of the revenues of the balanced budget in 2015 decreased by 5.3%. That is, local communities did not receive UAH 34.6 billion, the former official noted.

Klimenko finds the main reason for this not in the general economic crisis, but in January 2015 the government ordered to leave in local budget only 75% of individual income tax (in Kyiv – 40%). Meanwhile, this tax forms about 80% of all local budget revenues, he emphasizes.

“Before implementing famous government “reforms” all revenues from it remained in local budgets. What does it mean in practice? For example, only UAH 4.4 billion remained from UAH 7.8 billion of individual income tax, paid by citizens in January 2016, for development of their communities. The balance of more than UAH 3 billion was transferred to the state budget, which is administrated (split) by government”, - Klimenko notes.

As per the data, in January 2016 the excise tax from retail sales, transport tax and real estate tax in aggregate returned a little less than a billion of hryvnias. That is, they did not cover even the third of losses from the individual income tax, the former minister adds.

Previously Klimenko expressed his opinion that the increase of tax revenues of the budget 2015 by 38.1% versus the previous year is the result of inflation, which reached the historic highs for the first time for 20 years. 

 

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