Financial stability and the planned filling of local budgets of territorial communities play an important role in martial law. U-LEAD with Europe experts continue to work with communities to clarify innovations in the budget code and tax legislation.
The team of the U-LEAD regional office in Lviv region organized an information session for financiers on “Budget issues during martial law”.
Yuriy Golynskyi and Mykhailo Bundziak, advisors on municipal finance and management of the Lviv and Zakarpattia regional offices of U-LEAD with Europe, worked with representatives of local communities.
“Since the beginning of the full-scale war, our experts have been working by telephone and providing advice on topical issues, many of which concerned the budget process. There are many changes and innovations in the legislation that have an impact on the budget process in communities, “Yuriy Golynskyi stressed.
Many changes have taken place in tax legislation. Natural persons-entrepreneurs – payers of the single tax of the first and second groups, have the right not to pay the single tax. The interest rate of the single tax for taxpayers of the third group who use such features of taxation is set at 2 percent of income.
“According to the Resolution of the Cabinet of Ministers № 252 of March 11, 2022” Some issues of formation and implementation of local budgets during martial law “executive committees of relevant local councils decide on the proposal of local financial authorities to amend decisions on local budgets. Without the approval of the relevant commission of the local council, the executive committees transfer budget allocations from one chief budget manager to another, redistribute budget expenditures and provide budget loans under budget programs, including the budget reserve fund. They also approve local programs or make changes to them in compliance with the requirements of Article 91 of the Budget Code of Ukraine, “Mykhailo Bundziak said.
The experts also told the community about other powers of the executive committees on financial issues. A block of issues related to the remuneration of employees of local governments and budgetary institutions during martial law was considered separately.
“During martial law, the employer is released from liability for violation of wages, if he proves that this violation occurred as a result of hostilities or other force majeure circumstances. But relieving an employer of liability for late pay does not relieve him of his obligation to pay wages. An employment contract may also be temporarily suspended, and an employee may be transferred to another job not stipulated in the employment contract without his or her consent, ”said Yuriy Golynsky.
Participants were explained the terms of payment for employees who were called up for military service. Thus, employees called up for military service during mobilization retain their place of work, position and average earnings at the enterprise for a special period, which is issued by the relevant order (instruction) of the employer.
Experts discussed labor relations and salaries of health care workers. The issues of financing from the local budget of voluntary formations of territorial assistance and assistance to internally displaced persons were also considered.
Ukraine’s U-LEAD with Europe program for local empowerment, accountability and development is co-financed by the EU and its Member States Germany, Poland, Sweden, Denmark, Estonia and Slovenia to support Ukraine in its efforts to strengthen local municipality. U-LEAD promotes transparent, accountable and multilevel governance in Ukraine that meets the needs of citizens and empowers communities.