18.08.2022
On 09 August 2022, CASE Ukraine think tank held a discussion on the topic of Prospects of Decentralisation. The event featured MP, Chair of Subcommittee for Administrative and Territorial Set-Up Vitaliy Bezgin, Director of the Institute of Territory Development Yuriy Hanushchak and was moderated by CASE Ukraine Executive Director Dmytro Boyarchuk.
Keynote Points:
- Decentralisation is the basis for sectoral changes that have to happen in the country. Ukraine dealt with administrative and territorial division matters: territorial communities have been formed across the country, the number of Raions have changed, and community resources and powers have increased.
- The full-scale invasion and internally displaced persons have changed the demographics. A new approach envisions further modelling of service provision in the areas of public health protection, education and administrative services.
- The four directions to work in: separation of powers between the state and the local self-government; universal operation of the public service; selective correction of the administrative division; solving the situation with IDPs (matters of normal valid statistics and election law).
- It is necessary to introduce a legislation on administrative and territorial division, set straight the inner structure of local self-governance and solve issues of local state administrations.
- The budget for 2022 envisages 64% PIT left at its source in all the communities. The PIT has to be paid at the place where the production facilities are located, not where the employee has been registered.
- The influence of the body of local self-government in the filling of the budget with local taxes is insubstantial in Ukraine as it is not formalised in a normal body of law.
- According to the general rule, money follow the powers so where there are no powers there can be no money. Businesses should not be burdened with taxpayers’ money and fiscal encumbrances that are more necessary for public needs.
- The current legislation on the capital city is not compliant with the European Charter of Local Self-Government.
- There additionally exist problems of political (unpopular) and corruption (it is easier for someone to take cash rather than bother with collect real taxes for the budget) nature. It is necessary to amend the administration law to eliminate misuse.
- Ensuring an effective control, separation between the state and the local self-government + law on the capital city= balanced formula for EU integration.
Transcript of discussion (please follow the link)