06 November 2015, 16:35
According to the decision of the Committee, the Cabinet of Ministers of Ukraine is recommended to consider the suggestions of the Chamber of Accounts on the necessity of amending article 4 of the Law of Ukraine “On the Capital of Ukraine – Hero City Kyiv” in the part of establishing the priority of using the subvention funds for fulfillment of the capital functions and development of the capital infrastructure.
As was specified by a representative of the Chamber of Accounts, the audit has established that the city budget of the city of Kyiv, subsequent to the proposal by the Ministry of Finance of Ukraine amending the Law of Ukraine “On the State Budget of Ukraine for the Year 2014”, had been assigned and provided with the subvention for fulfillment of the capital functions in the amount of UAH 1.8 billion as expenditure costs. This decision conforms to article 67 of the Budget Code of Ukraine and article 4 of the Law of Ukraine “On the Capital of Ukraine – Hero City Kyiv”, which provide for allocation of such subvention to any needs of the city, but does not take into account the practice existing till the year 2012 of providing the city budget of Kyiv with subvention for fulfillment of the capital functions.
According to the information by the Chamber of Accounts, the whole size of the subvention provided in 2014 was used for the purposes established by agreement with Kyiv City State Administration and approved by the Regulation of the Cabinet of Ministers of Ukraine dated 17.09.2014 No 452. In particular, UAH 821.3 million (almost half of the subvention funds) has been used for offset of debt and payment for supply of heat, water, and electric energy to budget institutions and utility enterprises of Kyiv; UAH 421.2 million (23.4 %) has been used for wage payment with charges to employees of these institutions; UAH 370.3 million (20.6 %) has been used for debt servicing of the city budget debts.
As mentioned in the document, due to funding of solely expenditure costs, the works on vital objects of itinerary-transport infrastructure built during the previous years using the funds allocated for fulfillment of the capital functions, in particular, Podilskyi Bridge over Dnipro and the second line of the main city sewage collector, are not completed. The absence of targeted interbudget transfer in the state budget for the year 2015 enhances the risk of Kyiv City State Administration’s failure to fulfill the capital functions in city building sector during the current budget year.