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Analysts at the Ministry of Finance of Ukraine have said the key focus of fiscal policy during 2014 in the field of relations between state budget and local budgets is aimed to balance the national and regional interests for efficient use of economic potential in each region with maximum possible economic benefit, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
Thus, the total share of local budgets is up 9.8% or by 21.7 billion UAH in 2014 YOY.
Also, investment resource of local budgets for socioeconomic development grew by 3.4 billion UAH, to 16.2 billion UAH.
According to government analysts, in 2014 (like in previous years), state support of regional development will be carried out through the State Regional Development Fund, which holds 3.480 billion UAH. In order to concentrate the state support for regional development, in 2014, 1 billion UAH subventions will be appropriated from state budget to local budgets (for socioeconomic development of the areas) and will form a part of the State Regional Development Fund.
Several approved items of the State Budget of Ukraine 2014 confirm the fact that the government committed itself to social component. For the first time, the budget includes costs aimed to extend a network of preschool institutions and modernize the playgrounds at secondary schools and pre-schools. For the first time, it includes free breakfasts for 5-11 graders at secondary schools. These purposes will involve subvention from the state budget to local budgets in the amount of 607,000 UAH.
Also, bonuses for scope and quality of work will be established for health workers rendering the primary care in regions not involved in pilot healthcare reforming project.