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January 16,    the web-site of the Cabinet of Ministers of Ukraine published the Resolution of the Cabinet of Ministers “On Increasing the Rate of Remuneration of Employees of Establishments, Institutions and Organisations in Some Budget-Financed Sectors” (#10, of January 11, 2012).

The document envisions a step-by-step insignificant increase of rates of remuneration of employees over 2012. For example, the rate of the 1^stWage Category will increase on a quarterly basis from 1,073 UAH in January to 1,134 UAH in December. 

According to the experts of the AUC Analytical Center, although the Resolution improves the compensation of public sector employees, it simultaneously increases the load on local budgets because their expenditures to support the delegated authority 2012 were calculated based on the 1^stTariff Rate of 773 UAH. In other words, the increase of remuneration was not envisioned.  In the AUC opinion, this will lead to the drain of local budget funds earmarked for the implementation of important local projects and channelling them to implement the authority delegated to local governments by the central government.