Ukraine is a parliamentary-presidential unitary republic. According to the Ukrainian Constitution the highest state authority is the Supreme Council (Verhovna Rada) of Ukraine and the President is the head of state.
The Verhovna Rada is the only legislative body (Art. 75), the Cabinet of Ministers is the supreme executive body (Art. 113). The status of the President of Ukraine is stipulated in article 102 which states that he/she is the guarantor of state sovereignty and territorial integrity of Ukraine, and of the rights and freedoms of citizens.
The 1996 Constitution of Ukraine establishes the principle guaranteeing local government in Ukraine. The Law of Ukraine "On Local Self-Government" (1997), "On service in Local Government Bodies" (2009) and others were important milestones in its formation. Formally the local government in Ukraine complies with the European Charter on Local Self-Government, which was formally ratified by the Verkhovna Rada (the Parliament) of Ukraine in 1997.
General division of powers
The administrative system of Ukraine consists of 25 regions ('oblast'), one autonomous region (Republic of Crimea/Avtonomna respublika Krym) which has been annexed by Russia in 2014, two cities with a special statute (Kyiv and Sevastopol), and 10,885 municipal councils, among them 9,644 village councils (silska rada), 783 town councils (selyshchna rada) and 458 city councils (miska rada).
Sub-national government in Ukraine is composed of:
- regional and district councils (rady);
- city, town, village councils and their executive bodies.
The central executive power is represented by local regional and district state administrations (oblasni, rayonni dergavni administracii).
The existence of two different systems of local government - local administrations, representing the executive power, and local self-government can be a source of conflict.
In 2014 the Cabinet of Ministers of Ukraine approved the "Concept of local government and territorial organization reform". Ukraine is guided in this process by the standards contained in the European Charter on Local Self-Government.
A three tier territorial system was laid out:
- Basic (administrative units -communities);
- District (administrative units -rayons);
- Regional (administrative units-oblasts, Autonomous Republic of Crimea, Kyiv and Sevastopol).
Article 140 of the Constitution stipulates that local self-government is exercised through local councils in villages, towns and cities and their executive bodies. Although the Constitution (pt. 3, Art. 140) does not determine village's and hamlet's heads as local authorities, in the Law 'on Local Self-Government" (pt. 1, Art. 5) they are defined as local governments, "the main authorities of the territorial community" (pt. 1, Art. 12), enforced with the power to solve local issues (Art. 42), to manage local budgets and extra-budgetary resources, and to enforce contracts etc. Thus municipal heads at the basic level act as independent entities responsible for resolving local issues. Regional and District councils represent the interests of communities and do not have their own executive bodies. Instead, the Law "On Local State Administrations" stipulates that regional and district administrations exercise executive powers in the relevant policy areas.
Deputies of the hamlet, village, town, city, district and regional councils are elected by local residents through general, equal and direct voting, by secret ballot. Chairmen of the Regional and District Councils are elected by the respective council's members and preside over the executive staff of their councils. Heads of the regional and district state administrations are proposed by the Cabinet of Ministers and appointed by the President of Ukraine; their tenure remains valid while the current president remains in office.
Ukraine's legislation on self-government is complex, in certain parts contradicting itself and at times not particularly clear. For instance, there is some contradiction between the constitution and other laws, e.g. "Law on Local Self-Government".
Central level
The central level powers include ministries, state committees, central bodies of executive power (equivalent to state committees) and central bodies with special status.
Local level
Under Ukrainian legislation, municipal authorities can decide on their policies independently. In reality, as most of the village and some urban communities do not have enough financial resources to provide all necessary services to their residents, these functions are managed and financed by the district level – state administrations. Thus, enormous administrative powers are concentrated at the level of regional and district administrations; the former are directly subordinated to the president and are not accountable to the voters and the political forces in the region.
The local exclusive competences are governed by the Constitution of Ukraine (Art. 143) and the Law 'On Local Self-Government'. They determine that local governments:
- approve programs of socio-economic and cultural development and supervise their implementation;
- approve budgets of the respective administrative units and oversee their implementation;
- manage the property that is in communal ownership;
- establish local taxes and fees in accordance with the law;
- approve local privatization programs;
- manage housing and communal services, trade services, transport and communications;
- manage building and construction;
- manage education, health, culture, physical culture and sport;
- regulate land relations and the sphere of environmental protection;
- provide social protection' services;
- conduct foreign economic activity;
- solve issues relating to administrative-territorial structure;
- ensure law and order, protection of rights, freedoms and legitimate interests;
- provide local referendums and implementation of their results;
- establish, reorganize and liquidate communal enterprises, organizations and institutions, as well as monitor their activities;
- resolve other issues of local importance ascribed to their jurisdiction.
District and regional councils do not have executive powers, thus their powers are limited. They approve the programs of socioeconomic and cultural development and control their implementation; approve (but not compile) district and regional budgets.
According to the 'Law of Ukraine on Local State Administrations' the main competences shared with the central government consist of:
- the drafting of the local budgets, programs of socio-economic development and allocation of the necessary expenditures;
- property management, privatization, promoting entrepreneurship and implementation of regulatory policy;
- the regulation of industry, agriculture, construction, transport and communication;
- the regulation of science, education, culture, health, physical education and sports, family, women, youth and minors;
- the management of land use, natural resources and environmental protection;
- the conduct of foreign economic activity;
- the provision of social protection, employment, and wages.
The Constitution of Ukraine entitles central executive authorities to delegate functions to local councils. Delegated responsibilities include administrative, financial, personnel, etc. (74 positions according the Law). Among them:
- enforcing obligations regarding payments to local budgets for businesses and organizations regardless of ownership;
- monitoring of compliance with prices and tariffs;
- promotion of investment activity in the territory;
- promotion of recruitment of citizens for military service;
- organization and control of border and coastal trade;
- enforcement of land and environmental regulations.
Delegated responsibilities are accompanied by enhanced control by the central government over local authorities. The State finances the exercise of such delegated powers in full from the State Budget of Ukraine. The share of own revenues of local budgets directed to cover delegated responsibilities is steadily growing: 2009 – 26,3%, 2010- 25,6%, 2011 -33,4%, 2012-42,6%, 2013-43,4%.
