All revenues from Road Fund in 2024 to be forwarded to cover defense needs - MP
The Law on Amendments to the Budget Code to ensure the country’s defense capability and the defense industry development provides for directing the revenues of the Road Fund to cover defense needs.
That’s according to MP Oleksiy Leonov, member of the Parliamentary Committee on Finance and Customs Policy, who spoke on the air of the national telethon, Ukrinform reports.
"In the new edition, a very important thing is determined, that in 2024 all revenues of the Road Fund will be directed to the general fund of the state budget. These funds will go to cover defense needs. At the same time, road maintenance and repair, which will be required by the military, will be carried out at the expense of the reserve fund and the Road Fund balance for this year. In general, as for this year, the military personal income tax from October 1 to December 31 will be forwarded to the state budget, 50% will go to procure drones, which is approximately UAH 13 billion this year, and another 50% will go to Ministry of Defense for the purchase of artillery systems," Leonov said.
According to MP, next year, the military personal income tax will be distributed as follows: 45% (according to estimates, this is nearly UAH 43 billion) – for drones, 45% -- for the deployment of ammunition and weapons production, and 10% -- for military units.
Regarding local budgets, Leonov assured that "not a single hryvnia earned by communities will be withdrawn." According to him, 54% of the "ordinary personal income tax" will also go to local budgets.
"The only clarification is that at least 4% of this tax should be directed to support enterprises for the generation and supply of thermal energy, as well as the centralized supply of cold water and drainage," said the lawmaker.
He added that communities will have resources at the level of 2021. If that level is lower, in particular, in front-line communities, subsidies will be allocated from the state budget.
"The budget includes UAH 21 billion of basic subsidies and UAH 33 billion of additional subsidies," Leonov clarified.
According to him, the law contained a significant amendment regarding how communities can dispose of the remaining funds: "This is approximately UAH 200 billion. The Verkhovna Rada specified what it can be spent on. This is support for the Defense Forces, social security, including IDPs, shelters, fortifications, and medicines. The rehabilitation of the military is a very important issue."
According to Leonov, in this way the Verkhovna Rada responded to the public demand regarding the distribution of these funds.
As reported, on November 8, the Verkhovna Rada backed at second reading the draft law on amendments to Section VI of the Budget Code of Ukraine on Ensuring the Support of the State's Defense Capability and the Development of the Defense-Industrial Complex of Ukraine."