Next year the communities that exist in the region will pay UAH353 million worth of reverse subsidies to the national budget. The base subsidies, however, will be twice as big, exceeding UAH539 million.
This is what Inna Sviatna, local finance and management advisor to the U-LEAD with Europe Programme Vinnytsia Oblast Regional Office, highlighted, while analyzing the draft national budget for the coming year at a training course for financial specialists entitled Developing the Draft 2022 Local Budget.”
"High-quality financial management allows communities to improve the cost efficiency of funds in order to be able to influence the extent of subsidies provision. Today, we have got all the necessary powers and resources for doing so,"
Inna Sviatna noted.
During the training session, experts from the regional office told about the challenges the communities need to overcome in 2022, discussed the course of budgeting, and analyzed the draft laws capable of influencing the budgeting process. The opportunities the communities have to reduce the extent of subsidies provision were considered as well.
Inna Sviatna stated that the city of Vinnytsia paid the biggest amount of reverse subsidies – UAH259 million, being followed by the Ladyzhyn Community – UAH50 million, the Koziatyn Community – almost UAH23 million, the Illintsi Community –more than UAH10 million, the Zhmerynka Community – UAH6.5 million, the Kunka Community – UAH4.3 million, and the Tyvriv Community – UAH289,000.
In terms of per-capita reverse subsidies the Ladyzhyn Community with a population of 24,700 residents shows the lead, with every resident thereof due UAH2,027 to the state in 2022.
The biggest amount of base subsidies will be paid to the Bershad Community – UAH34.1 million, the Khmilnyk Community – UAH24.4 million, and the Yampil Community – UAH23.4 million.
"The communities have got a huge potential to increase budget revenues. This is why it is important to establish cooperation with the tax authorities, build capable education and medicine networks, and encourage businesses to pay taxes and develop,"
Vitalii Shvets, head of the U-LEAD with Europe Vinnytsia Oblast Regional Office, believes.
In total, according to the draft budget, seven communities are paid reverse subsidies, another seven communities are paid no adjustment subsidies, and yet another 49 communities in the region are paid base subsidies by the state.