Decentralization as a tool for solving the problem of lack of funds for education

budget_osvitaThe day before, on March 4, 2015, a round table on budget decentralization was held in Dnipropetrovsk.

The participants of the meeting were: local self-government bodies; government experts from the Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine; Ministry of Finance of Ukraine; State Fiscal Service; Ministry of Education and Science of Ukraine; Ministry of Health of Ukraine; Ministry of Justice of Ukraine; independent experts.

The main topic was the mechanisms of attracting and using money on the ground, the regulatory and legal acts that have already been adopted, as well as the legislative and rule-making work that is being conducted today and what to expect in the future.

The participants of the event emphasized that the state should take full responsibility for the provision of educational services by general education institutions.

The main components of the provision and regulation of educational services include: training of workers by vocational and technical institutions, provision of medical services to the population, financing of state programs for social protection of certain categories of citizens.

Expanding the rights of local authorities and providing them with full budgetary independence, according to experts, will allow solving the lack of funds for the development of education, ensure sustainable economic growth, which in turn will make it possible to qualitatively counteract the crisis phenomena of the financial sector of the economy and fulfill local budgets by 100 % .

According to the Ministry of Finance, according to the new model of financial support, local budgets will receive an additional resource to the general fund in the amount of more than UAH 22 billion. And in general, taking into account the balance of interbudgetary transfers, more than UAH 40 billion this year.

Thus, 100 % of fees for the provision of administrative services, 100 % of state customs, 10 % of income tax of private sector enterprises were transferred from the state budget. In addition, the sources of filling local budgets were also expanded thanks to the introduction of an excise tax on the retail sale of excise goods (beer, alcoholic beverages, tobacco products, petroleum products) at a rate of 5 % of the value of the sold goods. The tax base is expanding due to the collection of real estate tax from now on commercial (non-residential) property and tax on cars with a large engine capacity. 80 % of environmental tax will be credited to local budgets, instead of 35 %.

Also, local budgets will receive a basic grant to increase the fiscal capacity of their budgets.

According to experts, significant advantages will be received by united communities, whose budgets are equal to the budgets of cities of regional importance and districts, and, in addition to the specified taxes, they will also receive 60 % personal income tax, as well as other revenues.

According to the material: Educational portal "Pedagogical Press"

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