Zelensky signs law on budgets of united territorial communities

The document unifies the definition of the term "local government budgets". The law also provides for the separation of revenues and expenditures between the budgets of districts and local communities; establishment of a structure of incomes and expenses of budgets of territorial communities in the volumes set in the budgets of cities of regional importance and united territorial communities; establishment of equal conditions for village, town, city territorial communities in budget provision.

According to the document, the need for appropriate amendments to the Budget Code is due to the fact that the Verkhovna Rada adopted the Law "On Amendments to Certain Laws of Ukraine on the Definition of Territories and Administrative Centers of Territorial Communities" on April 16, and the resolution “On Formation and Liquidation of Districts” on July 17.  A new administrative and territorial structure of main and district levels required appropriate amendments in the legal framework for the functioning of the Ukrainian budget system.

On September 17, the Verkhovna Rada adopted amendments to the Budget Code in connection with the completion of the administrative and territorial reform (No.3614). The law stipulates that village, town and city budgets will no longer depend on the district.

According to parliament’s resolution No.3650 "On Formation and Liquidation of Districts", instead of 490 districts, some 136 districts are to be created in Ukraine.

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