OREANDA-NEWS. June 24, 2009. A new redaction of the Law of Ukraine On the Budget Code, approved by the Verkhovna Rada yesterday, will enable to shift interbudget relations to a new level. The Prime Minister of Ukraine Yulia Tymoshenko stated at the beginning of the CMU sitting.

“Yesterday the Verkhovna Rada was the venue of a significant event: the Budget Code was voted and it is a real powerful support to local budgets,” the Head of Government stressed.

Yulia Tymoshenko noted a key position of the new redaction of the Code appears decentralization of budget funds: “On initiative of the Government, firstly over recent years, not artificial flows of funds from the central budget resources into the local ones, but a real process, based on the law, was approved”.

The Premier added pursuant to this new redaction of the Budget Code the local self-government bodies will have in their budgets 100% of land tax and transport due. Besides, according to Yulia Tymoshenko, to ensure the development of regions the local budgets will have 15% of tax of profits of physical persons, 10% of revenue tax and 50% of overfulfilment along all the tax articles: “It is a really revolutionary breakthrough in forming of the local budgets”.

Yulia Tymoshenko expressed hopes signing of the Budget Code wouldn’t be blocked on political reasons: “I believe that the Budget Code will be signed and it will become real”.