President Viktor Yanukovych states that 90% of local budgets are subsidized.

"Today, about 90% of local budgets are subsidized, and the majority of them are more than 70% subsidized," the President said at the Association of Cities congress.

In this regard, he noted that the government will phase out the practice of public subsidies for local budgets, putting emphasis on providing targeted assistance.

Moreover, Yanukovych said that there is a need for effective incentives to enhance business in small towns.

He also mentioned the possibility of the return of certain taxes and fees, the proceeds of which will go to local governments, as there is now a situation when the company is located in the village, but taxes in its budget are not paid.

He also said that due to property taxation to the budgets of settlements in 2013 will give additional 2-2.5 billion UAH.

The President said that the real resource for investment development areas in 2013 will be about 16 billion UAH, which is 20% more than in 2012.

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