The government should immediately take systematic measures aimed at timely and full implementation of expenditures envisaged by the State budget 2018 related to the revitalization of the economy, modernization of health care and education, and increased social protection of citizens. The deputy head of the Opposition Bloc faction Serhiy Lovochkin wrote in a deputy inquiry to Prime Minister Volodymyr Groisman.
“At the end of June this year, in a deputy inquiry to the government, I highlighted the risks of implementing the State budget and the inefficient use of budgetary resources. However, the Cabinet of Ministers of Ukraine did not ensure the implementation of complex measures that would significantly improve the state of affairs in this direction. In view of the foregoing, I demand to urgently take systematic measures aimed at timely and full implementation of the expenditures envisaged by the State budget 2018, in particular, those related to the activation of economic development, the modernization of the health and education systems, as well as the improvement of social protection of citizens. I ask to inform me on the results of the measures taken in the statutory period,” the request says.
The MP explained that according to the results of January-July this year, the growth rate of budget revenues, as in previous periods, did not correspond to the planned level. During the mentioned period, the general fund of the State budget has not received $14 billion or 2.9% of planned revenues. According to the operational data of the State Treasury, based on the results of January-August of this year, the percentage of income received from the general fund of the State budget was increased to 17 billion UAH or 3% of the plan for the corresponding period.
“This negative trend is largely due to the fact that because of the ineffective economic policy of the current government, the base for growth of budget revenues is limited by factors that are irregular or administrative in nature and are not related to the growth of the economy, including the transfer of the NBU to the State budget, sale of 4G licenses for mobile communication, etc.,” Serhiy Lovochkin believes.
According to the politician, problems on the side of expenditures are also exacerbated. The plan of general fund expenditures for January-July of the current year was unfulfilled by 8.6% or UAH 45.5 billion. At the same time, the worst situation has arisen with the financing of budget items related to solving the most acute problems of Ukrainian society and economy. First of all, it concerns a health care system, which underfunding during the first 7 months of this year is more than 47%, as well as support for the economy, development of physical and spiritual culture and education, are underfunded by 40%, 31% and 9%, etc.
“The problem of the lack of funding by the government for the reconstruction of the National Cancer Institute, and measures for the rehabilitation of patients with cerebrovascular disease has not been resolved. Veteran organizations were financed only by 4.2% of the plan, social protection of children, families and women – by 46%. The financing of the program for the protection and rehabilitation of disabled people remains unimportant – 16.8% of the plan, the Fund for the Social Protection of Disabled People – 22.6%, rehabilitation of disabled children – 29.6%,” the politician added.
The inquiry also says that through the bureaucratization of the procedures necessary for spending, a part of the subventions for the development of local budgets is not funded. During the first seven months of this year, no hryvnia has been allocated for subventions for the development of rural medicine, subventions for supporting areas affected by armed conflict in the East of Ukraine. There is no funding for the creation of work places for the reconstruction and development of the infrastructure of the Donetsk region. Only 16% of the plan funded a subvention for the socio-economic development of the territories. The Regional Development Fund received only 19% of the planned amount.
“Due to the failure of the revenue plan and the financing of the state budget deficit, the risks of liquidity and the emergence of cash gaps in the financing of protected social spending are exacerbated, for example, delays in the payment of pensions in July,” Serhiy Lovochkin summed up.Follow @serhiylovochkin