In Donetsk, Victor Yushchenko has said it was vital to introduce administrative reform in Ukraine, according to the President’s press-office. 

“Each square meter of the territory should be profitable, and local governments are responsible for that,” he said, when explaining the essence of fiscal changes. 

The Head of State then urged the government to profoundly change the system of budget planning in order to make the regions financially self-sufficient.

“Territorial budgets must never follow the central budget but the other way round,” he opined, characterizing this approach as European.

The President said the existing system of local self-government was not effective.

“It is irrational to concentrate so many resources in the center, leaving almost nothing for the regions,” he said, pointing out that such disproportions gave rise to budget schemes and manipulations.

Then he stated that this reform would consolidate all the regions of Ukraine: “I am convinced we have partners in every region to carry out these new policies.”