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The distribution of money for regional development will be carried out through voting in Diya

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The distribution of money for regional development will be carried out through voting in Diya

The distribution of funds from the State Fund for Regional Development (SFRD) in 2023 will be based on the results of citizens’ votes on the Diya portal. This will make it possible to distribute funding between regions in accordance with the actual number of existing population, she said Deputy Minister of Community Development, Territories and Infrastructure Oleksandr Azarkhin. The Verkhovna Rada will consider the relevant bill 9165 “On Amendments to the Law of Ukraine “On the State Budget of Ukraine for 2023″ regarding the use of funds from the State Fund for Regional Development” in the first reading.

According to her, before the introduction of martial law in Ukraine, projects for the FDRR were selected exclusively in accordance with the State Strategy for Regional Development and regional development strategies. At the same time, the distribution of the DFRD volume was tied to the size of the existing population in the regions and the indicator of gross regional product per capita.

Since a large number of citizens left their homes due to the war, such a redistribution is no longer relevant. Therefore, the document proposed to distribute the FDRR funds (2 billion UAH) according to the following principle: 50% (1 billion UAH) — in equal parts between all regions (except Luhansk) and the city of Kyiv; 50% (1 billion UAH) — additionally in equal parts between 9 regions (Donetsk, Zhytomyr, Zaporizhzhia, Kyiv, Mykolaiv, Sumy, Kharkiv, Kherson, Chernihiv) that need the most attention.

Co-financing from local budgets for projects implemented at the expense of the DFRD will be at least 10%, and for the budgets of urban territorial communities: the cities of Kyiv and Sevastopol and cities with a population of more than 225 thousand people – at least 50%. At the same time, small cities will receive additional points, which will allow their projects to compete equally with projects of large cities. The final selection of projects will be carried out by open voting of citizens on the Diya portal for projects in the relevant region by place of registration or place of stay (for IDPs).

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According to Azarkhina, the priority areas of investment programs for 2023 should be the construction and repair of critical infrastructure facilities (in particular, water, heat, and power networks); construction and repair of health care facilities, administrative service centers, citizen security centers, civil defense facilities. In addition, priority should also be given to financing objects aimed at strengthening the regional and local economy, for example, creating conditions for the relocation of production facilities.

«The algorithm will be as follows: central authorities, local governments, military administrations submit projects for competition to regional commissions. Commissions evaluate projects on the online platform in accordance with the defined criteria and submit lists of projects that have scored a sufficient number of points (more than 25) to the Ministry of Infrastructure.

The Commission of the Ministry of Infrastructure, 50% of which is made up of representatives of the Budget Committee, checks projects for compliance with legislation and submits them for an open vote of citizens. After that, citizens who have reached the age of 16 can submit one vote for one project at the place of registration of residence or temporary stay. After that, rating lists of winners will be formed, which the Ministry of Digital will transfer to the regions, and the Ministry of Infrastructure will submit to the Cabinet of Ministers for approval of proposals for the distribution of funding“, said Azarkhina.

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