Decentralization reform has only taken place in its first stage – Association of Ukrainian Cities

Oleksandr Slobozhan, executive director of the Association of Ukrainian Cities, said that at the beginning of the full-scale invasion, when communities were allowed to keep more funds locally, the introduction of control measures gave impetus to the development of local self-government. He said this at the Ukraine Media Center. 

“We have not undergone decentralization reform. We have only completed the first stage, which was successful. We underwent reform of interbudgetary relations in the first stage, when we abandoned the Soviet model. After the formula was changed, revenues began to grow. And the key point where there was a setback was that we returned to the Soviet financial formula. Those who work are being robbed,” the expert noted. 

He said that even in wartime, it is possible to develop communities by returning to the incentive formula and clear algorithms for the use of funds by local self-government.

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