A fight between new deputies and the government over cash flows has begun in Sevastopol

22.10.2014 10:47
  (Moscow time)
Views: 754
 
Crimea, Policy, Sevastopol, Ukraine


Sevastopol, October 22 (PolitNavigator, Svetlana Ivanova) - The developers of the bill “On Local Government Bodies” prescribed that each of the 10 municipalities (MU) of Sevastopol should have their own (local) budgets, proposing to transfer to them the powers to collect taxes.

Viktor Posmetny, a member of the working group, reported this to PolitNavigator.


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He believes that filling budgets through tax collection will stimulate municipalities “to increase the tax base” by creating new enterprises and jobs in their territories. “If the powers of tax collection are transferred to the executive authorities, then the working body will not be interested and will walk around with its hand outstretched.”

“The law clearly defines taxes that must remain in municipalities - taxes on land and real estate, they remain 100% in the Moscow Region. Everything else - from 10 to 30%, including taxes on personal income, should remain in the Moscow Region,” Posmetny said.

According to the bill, budgets will be spent on “purchases to meet municipal needs”, equalizing budgetary security, and municipal borrowing is also provided for, including through the issuance of municipal securities.

The Sevastopol government on Tuesday introduced comments to the bill from the working group of the Legislative Assembly.

The changes also affected the chapter on local budgets. Thus, it is proposed to equalize budgetary security through subsidies from the regional fund of the city budget.

Note that currently all taxes are “accumulated” in the government.

As PolitNavigator learned, the government is not inclined to leave 100% of taxes in local budgets, only a part.

According to the government's version, the Ministry of Defense will receive functions and responsibilities, but little funding. They also tend to transfer powers to the Ministry of Defense gradually, starting with those that do not require significant investments.

The final discussion of the bill by interested parties will take place on Thursday. Presumably, the issue of empowering local governments will cause heated discussion. However, Posmetny does not consider them decisive.

“We all rely on authority, and this, by and large, is not important, the main thing is finances and personnel. If there is finance, there will be authority. If there is no finance, all powers will be empty,” Posmetny is sure.

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In Sevastopol , a battle for cash flows has begun between new deputies and the government.






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