​The Parliament approves the draft law on amendments to the Budget Code (No. 9084) in the second reading

11/22/18

Having adopted this law, the Parliament has settled issues related to the preparation of the law on the state budget of Ukraine for 2019.

The implementation of this law will contribute to the improvement of the financial situation of the regions and will reduce their dependence on subsidies from the state budget. The new law will also foster the implementation of regional investment programs and help attract foreign investments to the regional economy at preferential terms for the implementation of various regional manufacturing and social projects through the engagement of the funds from international financial organisations for municipal projects in the oblasts.

The implementation of the law shall also contribute to the fair distribution of revenues from the rent fee for the use of sub-soil resources and to the implementation of the program of state guarantees for healthcare services to households. It shall help preserve state-funded services in vocational pre-higher education (educational institutions of the Ist and IInd accreditation grades) and settle the operation of the supreme specialized courts as main entities entitled to manage state budget funds.

The new law includes, among others, the following regulations:
• a mechanism is settled for oblast councils and oblast state administrations to take external loans and to provide local guarantees;
• starting from January 1, 2019, 5% of the rent fee for the use of sub-soil resources in the production of mineral resources of national significance (except for the rent fee for the production of oil, natural gas and gas condensate) will be transferred to local budgets according to the location of the production sites;
• the list of guaranteed (“protected”) budget expenses will now also cover the program of state guarantees for healthcare services to citizens to keep it running;
• the tax paid by citizens for the lease (sub-lease, emphyteusis) of land plots and allocated land will be transferred to the respective municipal budgets depending on the location of the land plots;
• the list of the groups of citizens entitled to preferences and subsidies financed by the subsidy from the state budgets to local budget will be supplemented by the new group “participants of the Revolution of Dignity who suffered damages”;
• from April 1, 2019 till January 1, 2020, pilot projects for the provision of state guarantees for healthcare services to citizens under the respective state program as well as reimbursement will be implemented;
• the experiment for the legal custody of children funded through the subsidy from the state budget to local budgets for the social welfare assistance to orphans and children without parental care as well as for financial assistance to parents who bring up children and to legal custodians providing social services through children’s homes and adopting families will be prolonged until 2027 in line with the principle “money follows the child”.

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