The Government will insist on the State Budget for 2010 to be formed for the benefit of local budgets. Yulia Tymoshenko, the Prime Minister of Ukraine, imparted during the Government’s session today, government portal reported.

“I will insist and won’t retreat a step so that the budget of 2010 is formed on absolutely new interbudget relations, which envisage significantly bigger amount of financial resources allocated for the local budgets,” the Head of Government stressed.

Yulia Tymoshenko is convinced that land tax, transport and ecological dues must remain in the local budgets. Besides, according to the Prime Minister, the Gov’t will be insistent on a personal income tax to remain in the local budgets too. According to the Prime Minister, new interbudget relations ought to be fixed in the Budget Code.

“The Budget of 2010 should acquire positive revolutionary features from the point of view of redistribution of funds from the centre into the regions,” the PM emphasized.

Moreover, Yulia Tymoshenko opined the State Budget for 2010 have to contain direct planning of budgets for villages and rural-type settlements avoiding mediation of regions, areas and cities. “It is inadmissible that rural councils should be in slavery in vertical plane,” the Head of Government urged.


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