Crime for the sake of salaries and pensions

cessation of external financing of the budget forced the Ukrainian government flagrantly violate the principles of …

cessation of external financing of the budget forced the Ukrainian government flagrantly violate the principles of organization of the budgetary system. Social spending several months in a row funded withdrawal of funds from local budgets and other managers of the treasury

attempt to parliament last week to consider the draft state budget-2010 has once again failed. The budget process is transferred to the post-election time, since this is not one of the leading politicians do not want to take responsibility for unpopular decisions.

Therefore, the country continues to live on a temporary budget of painting: monthly expenses, as prescribed Budget Code, funded in the amount of one twelfth of the cost of last year. "This is not the biggest problem, she lived without a budget is not only our country. The year began with the other, more unpleasant surprises," - said "Judge," Governor of Poltava region Valeriy Asadchev. It was he who began 2010 with a second war: sued the government, which blocked the region belonging to treasury bills.

problems began long before the holidays. In December, the National Treasury has suspended payments on all government programs, except for a secure, virtually leaving no means all of the local budgets. Due to this, Yulia Tymoshenko managed to pay the December salaries to state employees early - before 30 December. According to "Expert", the consolidated budget deficit in 2009-the first of about 100 billion hryvnia (over 10% of GDP). Approximately 40 billion hryvnia deficit was for current expenses, the rest - to recapitalize banks and increase the authorized capital NAK "Naftogaz Ukraine". That is one third of government spending financed by borrowing!

Financial Pyramid Ministry of Finance

"Local authorities have not been able to master the tools provided in the local budgets for construction, education, medicine and other industries. These funds belong to us, but the government withdrew their social costs" - outraged Asadchev. In the new year freeze on the accounts has become widespread. "This is unprecedented in the history of budget relations in Ukraine. In fact, the government arbitrarily administered a single treasury account.

regional authorities is not the first day, signaling that the means of local budgets without agreeing with them, and often without the necessary papers and explanations are sent to other purposes. No matter what, even the payment of pensions does not justify such an approach to problem solving, since it undermines the credibility of the treasury and the central authorities in general ", - the general director of the Institute budget and socio-economic research Irina Shcherbina. In her view, such an approach resembles pyramid scheme: some debts are repaid at the expense of others, and so on, ad infinitum.

In this region lose their incentive to earnings, as funds raised by regional governments through local taxes and fees are, in essence, a debt the central government. In other words, pensioners receive a pension, and to budget - salaries and benefits at the expense of market fees and income from therental of municipal property.

While lawsuits across the country are not very many. Small towns with small budgets are not inclined to dramatize the problem. So, the mayor Ukrainka (Kyiv region) Pavel Kozyrev said he was not going to sue the government. "Ukrainian is one hundred percent completed the budget last year, but 180 thousand hryvnia (a fairly serious amount for our city) we did not have time to use. This problem - part of a systemic crisis of power. The country was in a state of permanent elections, can not afford not to pay retirement, not to pay for gas. With the budget crisis are beginning to pull a short blanket on their head, and vice versa. This can be avoided only one way: to decentralize budgets, placing them in the management of local leaders, "- explains Kozyrev.

recently followed the example of Poltava city executive committee Cherkasy - he has filed a lawsuit in the State Treasury, has ceased to serve its expenses for lighting and cleaning the streets. "Two weeks ago, came the joyful news: State Treasury missed the first and so far the only payment this year, the amount of ... hryvnia seventy-three cents - the state duty for the statement of claim. More - a single payment," - ironically Cherkasky Mayor Sergei Odarich. According to Director of Department of fiscal policy Cherkassky Mayor Natalia Dzhugan, in December, the Treasury has not undertaken a payment of more than four million hryvnia taken by the City of obligations, although the accounts they had about 20 million hryvnia. "This is a criminal offense - misuse of our community government bodies. The Treasury must service our payments and not to interfere in the execution of the budget process and override the" hole "budget", - says Dzhugan.

intend to sue the state, many leaders, including mayors of Zaporozhye, Vinnitsa, Donetsk and the governors of Lviv, Poltava and Kherson oblasts. Thus, the chairman of the Kherson Regional Administration Boris Silenkov holds a grudge against the government since the days of heavy snowfall at the end of last year. When the country was covered with snow, the authorities rushed to the area to fund the clearing of roads, but the State Treasury not remitted payments oblavtodoru and utility companies for fuel. According to the governor of Kherson, in his field hovered payments of two million hryvnia for petrol for disaster relief.

"Since last year the Treasury Department did not carry out payments over unsecured lines. In the end, the end of 2009 the second we were not able to finance the regional budget of 1,3 million hryvnia, and taking into account regional subsidies to the city of Kremenchug - about five million hryvnia. K example, the Treasury Department froze the money that the developers list on the city"s development - it means special fund. Having money in the account, I can not use them "- says the mayor Kremenchug Nicholas Gluhov. He decided to follow in the footsteps of their colleagues from other areas and to prepare a lawsuit to the State Treasury for abuse of authority. Gluhov predicts that in the first quarter in many cities, including the Kremenchug, a problem with the calculations for energy consumption, which subsequently affect the functioning of schools and hospitals. "Believe me, by mid-February masse any problems with the infrastructure of cities: the lighting and cleaning the streets of snow, the work of the ambulance and the like. I"m not talking about the objects under construction, commissioning are scheduled for the beginning of the year", - stressed Gluhov.

But Kiev Mayor Leonid Chernovetsky quarrel with the Cabinet will not be: this State Treasury subsidizes once rich city budget. According to "Expert", its revenues are made only to two-thirds. Underfunding of a profitable part was more than seven billion hryvnia, expenditure - over six billion hryvnia, including social security - 800 million, utilities sector - 390 million hryvnia.

And State Treasury is not calculated with a consortium EDAPS (Timoshenko publicly accused this structure to monopolize the market and work for the Party of Regions). Consortium went to court, accusing the government of misappropriation of budget funds intended for the production of identification documents, and more convincing stopped working. Inventory forms passports, driver"s license and tehtalonov rapidly melting, and soon many citizens feel it myself.

will hurt

"The state has no money, all the free resources are directed to the calculations for natural gas, salaries and pensions. The money to repay debts to the cities to take nowhere. By early 2010 the first state received more than 11 billion hryvnia advance payments from enterprises income tax profits, arrears of VAT recovery is more than ten billion hryvnia. My forecast is disappointing: the end of February the state will default on its domestic obligations ", - says Sergey Odarich. In this part of the cities and regions face the problem of repayment of municipal bonds. "While difficult to predict who will not pay off. Loans have to take a payback projects. For example, water utilities treatment plant - does not pay. Yes, this project clearly improves the environmental situation of the city, but the economic effect of zero. The same story with the construction of roads: the flat and smooth surface of the highway not make any money, municipal credit not get away. Our city is working with the European Bank for Reconstruction and Development and the World Bank on the draft replacement of pumping equipment. This project pay off, so we put out the bonds, "- says the mayor of Cherkassy.

Today, public sector workers do not receive awards, they cut the allowance. Many schools and hospitals cut jobs, and the place of people who retire, do not hire new workers. According to "Expert", only in Kiev similarly expect to save over 200 million hryvnia, cutting teachers" jobs in ten thousand. It is estimated that the Finance Ministry, using such tactics across the country, the state this year to save up to ten billion hryvnia.

Another article economy was the government"s decision to ignore the passed in late 2009-th to the filing of the opposition legislation to raise the social benefits. Almost no government purchases are being (and it brought a positive effect: without the usual income left tens of thousands of officials and okolobyudzhetnyh entrepreneurs who are accustomed to live at the expense of kickbacks).

At the end of last year, President Viktor Yushchenko issued a decree "On urgent measures for the normalization of treasury services of local budgets." The document, in particular, provides for the establishment of special commissions to verify implementation of the Cabinet of Ministers of the Budget Code regulations. These commissions (in their composition - prosecutors and SBU) have not only brought under control, but also to ensure speedy implementation of the territorial bodies support treasury operations involving the transfer of funds to local budgets. But it is clear that today no one would follow the edicts of the outgoing Yushchenko. And because very soon the country will understand that we only have three scenarios for the further development of the situation. The first - the systematic delays in the payment of salaries and pensions, as in the mid 90"s. The second - a political decision to reduce the size of social benefits, as recently happened in Latvia. The third scenario - thee63artificial stimulation of inflation for the depreciation of social benefits.

Whoever comes to power, he will have to balance the budget. Rather, in its pure form will not be implemented any of the scenarios. In particular, the Finance Ministry has clarified the draft state budget-2010, where the amount of revenues and expenses of the consolidated budget of slightly reduced compared with the plan last year. Thus, revenues amount to 328.3 billion hryvnia, and expenses - 360.9 billion hryvnia (including 6.5 billion hryvnia - transfers to NAK Naftogaz Ukraine ", 32.2 billion hryvnia - the Pension Fund and 50 billion - to recapitalize banks ). Officials of the Ministry of Finance already know that the budget sector will soon have to tighten belts: the end of the election will bring the budget crisis.

Svetlana Krukova

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