The Document was remitted by the Ministry of Finance, pursuant to Clause 49 of the Budget Code of Ukraine.
Whilst elaborating on this Document, Committee members noticed the continuing practice of irregular monthly planning of several General Fund expenditures (primarily those related to development).
Under several Budget Programmes the greatest expenditure is planned in the fourth quarter of the current year. This is expenditure towards the medical control of TB and AIDS, treatment of cancer patients (69 percent of the annual amount); centralized procurements of X-ray, Diagnostic and other equipment for medical care institutions (80 percent, including 47 percent in December); construction and repair of State-owned and Municipal Airports (71 percent).
A similar situation presents itself with the monthly allocation of several Capital subventions to Local Budgets. 70 percent of subvention is allocated towards the procurement of school buses for rural areas in the fourth quarter; 69 percent for procurement of municipal trolleybuses and trams; 67 percent for setting up recreational areas, memorial and museum complexes, and development of historical and cultural landmarks and preserves; 60 percent for construction and acquisition of housing for servicemen, and 54 percent for construction and development of metro systems.
A considerably long period taken up by tender procedures, the seasonal pattern of several capital construction works, and the limited prepayment period against the non-uniform allocation background, creates risks leading to a failure to fulfil the relevant budget appropriations in their full amount. At the same time, the allocation, by the Budget managers, of the major portion of expenditure at the end of the year, can affect financial discipline, and in particular increase the number of invoices awaiting payment. The unused funds, remitted to Local Budgets throughout the year as subventions, always, at the end of the year, return to the State Budget.