According to the chairman of the Samopomich faction in the parliament Oleh Bereziuk, the draft budget submitted by the government for the next year is inflationary and does not foresee any development.
First, with regard to small and medium-sized businesses, which are the main suppliers of money to the treasury: “The government does not comply with the direct regulation of the Tax Code, which obliges the Cabinet to impose a tax on the withdrawn capital instead of the profit tax. This will stop the activities of oligarchic enterprises which are using Ukrainian raw materials and are now siphoning off money from the country, but will allow small and medium-sized businesses to invest in the development of their own industry, which benefits the Ukrainian budget,” says Oleh Bereziuk.
In addition, according to the deputy, another attempt is made to rob local budgets. Therefore, the Samopomich faction demands from the Cabinet to immediately rectify the situation, which is embedded in the draft budget:
– to transfer all payments that are not appropriate of local communities to the state budget. Because there are intentions to make local budgets pay for the maintenance of educational institutions of the first and second level, and benefits and subsidies for housing and communal services, among other things;
– to reduce the percentage of local budgets’ money that is transferred to the state budget in the form of a reverse subsidy down to 30%. Presently, this is 50%, and the budget-2018 provides for 80%;
– all subsidies and benefits should be paid to the communities directly from the local budgets, without any “mediators” in the form of regional or district administrations.
“We are talking about a serious robbery and undermining of sovereignty from within. If this draft budget is approved, then the medium and small cities will simply not be able to function. And strong communities mean a strong state,” says Oleh Bereziuk.