Budget-2010 will be formed according to a qualitatively new principle with entertaining of interests of villages, rural-type settlements, towns and depressed regions. The Prime Minister of Ukraine Yulia Tymoshenko announced on Saturday during a meeting dedicated to the issues of social and economic development of rural settlements, which was held in a regime of open Governmental session, government portal reported.

As the Prime Minister put it, nowadays village and rural-type settlement councils receive funds according to a reminder principle which significantly hampers development of the territories: “That’s why we are changing an approach to forming a budget policy for rural societies”.

Yulia Tymoshenko imparted the budget of following year will be elaborated along a scheme: “from centre – to the village and rural-type settlement” which would enable to balance financial resources and determine a list of villages necessitating subsidies.

The Premier also stated the next year 100% earnings from the land tax, transport and ecological dues should stay in the local budgets and be directed to the development.

Besides, the Head of Government informed in the course of three years the Gov’t intends to transfer to the practice under which the local budgets will keep 100% funds obtained from income tax of physical persons.

Moreover, according to Yulia Tymoshenko, authority of local councils is proposed to be enlarged with regards to use of the budgets. Yulia Tymoshenko added as a result of new budget planning the local budgets will receive extra UAH 2 billion in 2010.

The Head of Government stressed to implement these tasks the Parliament have to include a series of addenda to the Budget Code of Ukraine the following session week already.


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