The Verkhovna Rada adopted in its entirety the draft law No. 3510 “On Amendments to the Budget Code of Ukraine”
326 people’s deputies voted for the relevant decision.
The law amends Articles 16, 17, 48, 71 and 103-1 of the Budget Code of Ukraine, which provide for the possibility for local self-government bodies to use subventions to repay local debt, as well as to direct subventions to repay and service local debt on local internal borrowings.
According to the law, 90% of the total amount of the subvention is distributed between the relevant local budgets (except for the budget of the city of Kyiv) depending on the length of public roads of local importance in the relevant administrative-territorial unit as of January 1 of the year preceding the planned one.
The specified funds may be used for the construction, reconstruction, repair and maintenance of streets and roads of municipal property in settlements in the amount of no more than 20% of the amount of such subvention approved by the Law on the State Budget of Ukraine for the relevant local budget, as well as for the repayment and servicing of local debt under local internal and external borrowings attracted for the performance of repair and construction works on public roads of local importance and municipal property, in the amount of no more than 30% of the amount of such subvention approved by the Law on the State Budget of Ukraine for the relevant local budget.
In January-April 2020, local governments received UAH 53.4 billion in inter-budgetary transfers from the state budget. Also, subventions in the amount of UAH 6.5 billion were directed from the special fund of the state budget for road repairs.
