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News / 3 February 2014 | 12:47
Balancing national and regional interests remains a top a fiscal policy

Balancing national and regional interests remains a top a fiscal policy


Ukraine’s national and regional interests in the State Budget 2014 are balanced with  maximum precision, so fiscal policy is economically and socially justified, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

In 2014, the government paid special attention to the development of regional potential, by defining the main direction of relationship of the State budget and local budgets. Maintaining a balance between these budgets is beneficial for the nation and is the basis for the rational use of the economic potential of each region of the country. Thus, in 2014 the total funding of local budgets is up 9.8%, to reach 21.7 billion UAH year-on-year. 

The main component of the increased local budget support is social services. Government analysts point out that financing the social services is an investment in the future of Ukraine, a fundamental aspect of the state development.

Therefore, this year's budget includes costs of expanding the network of preschool institutions, their upgrade, as well as modernization of children's practice grounds. It also includes costs of breakfasts for 5-11th grade students of secondary schools.

In addition, the approved budget establishes bonuses for extra hours and quality of work to health professionals who provide primary care in the regions and do not participate in the pilot project of health care reform. It envisions childcare allowance for disabled group I or II due to a mental disorder, additional payments to paramedics of emergency medical system and support of health system reform. In general, the investment resource of local budgets for social and economic development grew by 3.4 billion UAH, to 16.2 billion USD.

Government analysts note the importance of the measures taken to strengthen regional positions, thus raising the Ukrainian society to the European social standards by cutting socio-economic inequalities.

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