Decentralization ultimately turned out to be a stranglehold around the necks of Ukrainian regions – economist
Local authorities in post-Maidan Ukraine were given more powers, but these powers were not given more funding.
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This was stated at a press conference in Kyiv by the head of the Committee of Economists of Ukraine Andrey Novak.
“Today we have serious wage debts. This is a consequence of the fact that fraudulent decentralization works. In fact, no decentralization has taken place; today we only have decentralization of powers. That is, local authorities were given more powers, but they were not given more finances for these powers. As before, in this year’s budget and in the draft for the next, 80 percent of taxes, that is, the revenue side of the budget, goes to the central budget. And only 20 percent remains for all local budgets,” the expert emphasized.
“Of course, with this ratio, local authorities do not have enough resources to finance what they have received more powers to do. That is why there is an active reduction or closure of institutions,” Novak added.
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