Samopomich: Amendments to the Budget Code endanger the functioning of the institutions of education, health, and social services

The Cabinet says that the adoption of amendments to the Budget Code is extremely important, because it lays the changes in the funding of education, medicine and social services that promote reforming and continue the policy of decentralization and increased responsibility and authority of the local governments.

However, the Samopomich Union faction has substantial remarks to the bill, because the local budgets will not withstand the load transferred to them, and therefore the operation of schools, hospitals, and social benefits will be at threat.

Thus, according to the changes, the local budgets receive the delegated authority for reimbursement of benefits, but the local executive authorities have no right to determine the manner and the scope of these compensations, and have no funds for this. So, the introduction of this regulation will lead to the impossibility of reimbursement of benefits due to the lack of authority and lack of local resources.

With regard to education, all costs associated with the maintenance of schools, except for the wages for teachers, are transferred to the local budgets. “The question is whether in small towns and district centres schools there will be heating, electricity, equipment, cleaners, and general material support? That is, in the Constitution the state defines the right of people to education as a guaranteed nationwide service, while transferring these costs to local budgets in fact,” says MP Iryna Sysoyenko.

Also, local budgets will have to pay for utilities and energy for medical institutions. “That means that local budgets won’t be able to afford to maintain large urban hospitals; there is also a particular threat to regional hospitals which might be left without heating and electricity. For these costs there is no source of income, and they will eat up the development budgets,” adds the MP.

Therefore, the amendments to the Budget Code will result in a serious mismatch between the powers of the local governments and the resources necessary for their implementation. The position of the Samopomich Union faction lies in the fact that the transfer of powers should be carried out only with the provision of additional sources of income.

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