OREANDA-NEWS. June 10, 2010. The Cabinet approved draft amendments to the Budget Code of Ukraine. Prime Minister Mykola Azarov said this speaking at a public meeting of the Ukrainian Forum "Program of economic reforms: strategies and mechanisms of implementation".

As the Prime Minister underlined, the new edition of the Budget Code provides a significant decentralization in the management of public finances.

According to the Prime Minister, the Government decided for the first time to pass eight national taxes and fees to the local level. In addition, the draft Budget Code confers the right to local budgets to receive 25 per cent of the income tax. Mykola Azarov noted that this financial resource will be redistributed proportionally among the budgets of all levels.

"25 per cent income tax is a major financial resource that will be redistributed between the regional and district budgets as well as the rural and village budgets. We have the only task to encourage local authorities to foster maximally entrepreneurial activities at the local level", said the Prime Minister.

He emphasized the positive trends in the economy for structural reforms. According to Mykola Azarov, they formed after the approval of the Law "On the State Budget", the budget system stabilization, adoption of the anti-corruption, transparent law on public procurement, Parliament’s approval in the first reading of the Law "On the principles of domestic and foreign policy" as well as the Law "On the judicial system".

Moreover, Mykola Azarov informed that the Cabinet plans tomorrow to pass a draft Tax Code of Ukraine. Its approval will much simplify the system of tax administration. "Tomorrow we will debate the draft Tax Code at the meeting of the Government. It will be significantly reduced a number of both local and national taxes, greatly simplified the procedure for their administration", he said.

The Prime Minister added that a draft State Budget for 2011 will be based on the new Tax and Budget Codes. The Head of the Government called on MPs to approve these two laws to the end of the current session.

"We hope that constructive discussion of the two biggest bills in the Parliament and their adoption to the end of the current session will allow us in early September to introduce in Parliament the Budget for 2011 on a new budget and tax base", concluded the Head of the Government.