Kyiv will still have a lot of extra money, even after the “military personal income tax” is withdrawn.
About it stated senior economist at the Center for Economic Strategy Yuri Gaidai during a discussion on bill No. 10037, which provides for the redistribution of “military” personal income tax from local to the state budget (was adopted in the second reading on November 8 – ed.).
“Kyiv remains with a significant surplus, even with the withdrawal of personal income tax. This is evidenced by data for 9 months of 2023,” Gaidai emphasized.
According to the expert, among the top 20 surplus budgets, the majority of the surplus at the local level is generated by Kyiv, despite the fact that it has a smaller share of personal income tax in distribution and does not have reverse subsidies.
In addition, the budgets of the Kyiv region, Odessa, Mariupol (due to a significant reduction in expenses and the preservation of revenues from several large payers) and Kharkov are in significant surplus.
At the same time, the expert noted that in the context of individual local budget expenditure programs, one can see programs that are difficult to classify as top priorities during the war. And also those for which there is generally an abnormal increase in costs.
“This is also the organization of improvement of settlements, for which, compared to eight months of the corresponding year, we have in nominal terms 45% by 2021. Expenses for the maintenance and development of highways come from the local budget, because there are separate expenses from the state budget. So “We see a significant increase in contributions to the authorized capital of business entities. Over 9 months there is already definitely more than there was in 2021 in nominal terms. And there is an increase compared to the previous year too,” Yuri Gaidai noted.
According to the expert, according to the comments of individual representatives of local governments, they explain the increase in expenses for improvement programs and contributions of sufficient capital funds by the fact that there is a need to redirect funds from capital expenditure programs for which payments are limited.
“But there is probably a certain ineffectiveness of budget policy regarding the determination of allowable expenditures of local budgets and regarding the implementation of control,” he noted.
We remind you:
On November 8, after the Verkhovna Rada adopted bill No. 10037, according to which military personal income tax will now be sent to the state budget, the mayor of Kyiv Vitaly Klitschko said that now Kyiv has nothing to help the Armed Forces.
2023-11-08 14:27:28
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