The Cabinet of Ministers has approved the draft amendments to the Law of Ukraine “On the State Budget of Ukraine for 2019” that were prepared by the Ministry of Finance. The need for these amendments arose due to the cancellation of the first local elections in 45 amalgamated hromadas and additional elections of local council members in 7 amalgamated hromadas on December 23, 2018, caused by the introduction of martial law in ten regions of Ukraine.
“It is a pity that we have to make amendments to the state budget in January already, but without them it will be impossible to finance districts that cover these amalgamated hromadas, and they would be left without funds for education and healthcare. The state budget for 2019 had inter-budget transfers for these amalgamated hromadas, and not for the district budgets as it used to be the case. But the elections in these hromadas are still pending, so it would be impossible to finance these districts smoothly in 2019 without the proposed budget amendments,” Minister of Finance Oksana Markarova said.
The draft law specifies the volume of the inter-budget transfers for the budgets of districts where the elections in amalgamated hromadas did not take place as well as for the budgets of town amalgamated hromadas where the additional elections are still pending and for 8 town budgets where new members joined amalgamated hromadas, which was not stipulated in the law of Ukraine “On the State Budget of Ukraine for 2019”.
Also, the Cabinet of Ministers issued the executive order “On the Allocation of the Additional Subsidy for the Expenses Delegated from the State Budget for Funding Education and Healthcare Facilities between the Local Budgets in 2019” approving the decision of oblast state administration on the distribution of the additional subsidy between local budgets that is equal to UAH 14.9 billion as per the state budget for 2019. This approval is in line with the amendments to the Budget Code of Ukraine (part 5 of paragraph 1036) that entered into force on January 1, 2019.