Reform of the Institute of Local Referendum: Participation of Citizens in Governance
The Polissya Fund, within the framework of the project “Expanding European Principles in the Field of State Aid and Public Procurement” analyzed the situation with providing state aid to the enterprises of the region. It is no secret that such activity may be related to corrupt factors, so there is a real need to introduce public control over the process of providing state aid, as well as the conditions and principles of providing it.
According to the results of the study, it was found that the main form of state aid that is present in the Chernihiv region is tax benefits. Tax benefits are a kind of tool for stimulating the development of an individual or industry.
According to Art. 30 of the Tax Code of Ukraine, the tax privilege is provided by the tax and customs legislation of the taxpayer’s exemption from the obligation to calculate and pay tax and collect, to pay them tax and to collect in a smaller amount if there are grounds.
Since 2006 (Fig. 1), the total amounts of tax benefits obtained have increased by 2010 inclusive. The average growth rate of this figure was 25% each year. However, in 2011, the total amount of declared tax benefits decreased by UAH 283.4 million. or 16% (of which the state budget for UAH 288.4 million).
That is, budget losses related to the provision of tax benefits are very significant, although they decreased in 2011.
What kinds of activities have eaten a considerable amount of public funds? (Fig. 2).
Laboratory of legislative initiatives within the framework of the project “Reform of the Institute of Local Referendum: Participation of Citizens in Governance”, which is carried out jointly with the NGO “Center for Political Analysis and Electoral Consulting” (Lutsk), NGO “Polissya Fund of International and Regional Studies” (Chernihiv). Europe “Under the project” Uniter), which is implemented by Pact in Ukraine with the support of the USAID Agency (USAID), prepared recommendations to Bill No. 7082 “On the Local Referendum”. These recommendations will be envisaged in the preparation of Bill No. 7082 for the second reading.
The analysis of the Constitution and laws of Ukraine suggests that a local referendum is a constitutionally enshrined form of direct expression of territorial communities in the relevant administrative and territorial units in resolving issues of local importance by direct voting. In addition, a local referendum is a priority form of lawmaking of territorial communities. After all, decisions made at local referendums, embodying the will and legitimate interests of the territorial community, have appropriate legal force.
At the same time, the Constitution of Ukraine, the Law of Ukraine “On All-Ukrainian and Local Referendums”, the Law of Ukraine “On Local Self-Government in Ukraine” and other applicable normative legal acts do not allow the citizens of Ukraine to freely and fully exercise their right to participate in local referendums, and the most important and clear. elections depending on the activities of representative bodies of local self -government and the state.
Thus, the purpose of this project is to consolidate the efforts of the public, experts and politicians in order to lobby in parliament to changes to the legislation that would be in the interests of civil society, as well as to promote the institution of a local referendum as a tool for direct involvement of citizens in government.
The end result of the implementation of this project should be both a legislative framework that meets the interests of civil society and European standards, and the formed position of civil society on the need to use an institute of local referendum as a form of citizens’ participation in government.
The report analyzes the provisions of the said draft law, taking into account the comments of the Main Scientific and Expert Administration of the Verkhovna Rada of Ukraine, as well as the provisions of the current legislation, which regulates various aspects of the functioning of the local referendum institute (Constitution of Ukraine, Laws on All-Ukrainian and Local Referendums, etc.). In addition, the LZI experts conducted an analysis 1) developed by the Venice Commission of the Code of Suited Practices on Referendums and the evaluation of the draft law on the local referendum of the Directorate of Democratic Institutes of the General Directorate for Democracy and Political Affairs of the Council of Europe, 2) of international experience in the field of regulation.
The project involves discussing in focus groups of proposals for the bill, as well as expert survey on the results of focus groups in order to prepare such recommendations that would meet both European standards and the interests of civil society of Ukraine.