Three billion for Rivne: what will it be spent on?

by Nicolas Miller SEO

This year Rivne plans to attract a record amount to its budget - over UAH 3.1 billion. Many, however, doubt that this amount of income is real. There are also comments on what exactly this amount is going to be spent on. But this is the budget for this year approved by the Rivne City Council - 26 city deputies voted for this document.

Yuriy Chaborai, city council deputy:

- The community budget is a poor budget for eating and, having good revenues, has nothing to do with the development of the community, does not provide for the allocation of funds to strengthen the defense capability of the city or region. The budget for 2023 does not cover the issue of supporting the military in the northern direction, despite the threat of attack from Belarus. But the amount of funding for utilities has been significantly increased, where money simply disappears and is spent on food, bonuses and so on. This budget has nothing to do with the budget of the city, which is in martial law.

Halyna Kulchynska, deputy of the city council:

- It would be really good if the city had these 3 billion, but it seems to me that the expected revenues are somewhat overestimated... As always, most of the budget funds are spent on protected items - salaries to public sector employees, accruals, utilities. In particular, the largest sector is education, which has 7 thousand employees. The state has cut the subvention for education, put it on local governments... This is one of the arguments why our faction still voted for the budget, because it is important to let people know that the city supports them, that they will be paid.

What is not quite so in that budget is capital expenditures. We insisted that 50 million be removed from consideration. The first is 30 million for the program "Warm City", it is not clear what they were supposed to be spent on. We have not received the planned measures in stages. Second - 20 million for capital expenditures of housing and communal services, it is not specified in the documents of the session what they were supposed to be used for.

Another question is 15 million for the municipal guard. When it was created, it was said that they would earn money for themselves: by fines for parking, unauthorized trade and so on. But we have not seen this work.

I believe that we need to discuss, prove our position, defend - in a dialogue. We did it, and these 50 million were removed from consideration.

Svyatoslav Klichuk was the only deputy who abstained from voting:

- "There are many questions to many documents: why are we adding rates for the "Plast", and the amount of funding this year is less than last year? We say that we will introduce electronic ticket, and then we will compensate, but there are already 7 million for specific companies that are "friendly" to one of the men who will vote... Why have they not even started cleaning the lake, at least some preparatory work? This is not the way to do it, this is not the way to divide the budget! We are not button pushers, are we? Once a year, we make a decision on which everything will depend.

Mykola Blyashyn, the only deputy voted against:

- In the previous convocation, at the budget committee, we heard reports from the chief spending units, what exactly had been done, and looked at what to spend them on. And this year, the documents were given to us on the go. Last year, about 30 million was allocated for landscaping of the city, and this year 35 million was allocated for it. I am not against landscaping, but I want to know what those funds were spent for and what they will be used for? Again, more than 30 million for landscaping - and what objects will this money be spent on? There is not even oral information, but it should be in writing, with decoding! For the first time in all the years that I have been in the commission, the Budget Commission has not made any proposals to the expenditure part of the budget! Either the executive authorities and the mayor made the budget they needed and ensured its very quick adoption... Or everything was clear to everyone in advance or nothing was clear - this is an abnormal situation. We are not talking about any openness in the distribution of funds. That is why I did not vote.

Oleksandr Tretiak, mayor of Rivne:

- I would describe it as a victory budget, because it is the highest level of revenues of the general fund of the budget in the history of the city - more than 3 billion 157 million hryvnias. I thank the military, entrepreneurs, all taxpayers who are involved in filling the budget. You have seen that despite the critical speeches, the deputies supported the budget. Secondly, Rivne has allocated and will allocate a lot of funds for the military. We have now adopted the basic budget. Funds for capital expenditures, funds for the needs of the military will be considered at the February session.

Natalia Mayorova, deputy, member of the budget committee:

- If we talk about the general part of the budget, expenditures in all areas are provided in sufficient amount. Education, medicine, cultural and sports institutions - funds are provided for salaries, utilities and other expenses.

In particular, an additional UAH 43 million has been planned for teachers' salaries in case of a decrease in the amount of educational subvention. UAH 75 million is provided for in the reserve fund - these funds will allow to promptly solve urgent issues of the hromada that may arise during this difficult winter for Ukraine, to help, as in 2022, the Rivne Territorial Defence Battalion of the Armed Forces of Ukraine, etc. The amount of support under the "Care" program will increase by more than 22 million compared to this year. In particular, the funds will be used for the manufacture of monuments to fallen heroes, payments to children whose parents died in the war, and persons with disabilities injured during hostilities. We have allocated UAH 5 million for the program "Energodom-Rivne" to ensure that those condominiums that have started the implementation of energy efficiency measures receive timely reimbursement of interest on bank loans and grants to cover the cost of construction works and equipment.

Public order and security is now an important area. The budget provides for: UAH 500 thousand for the work of public points for the protection of order and conducting raids and patrols, UAH 5 million for the program of mobilization training and defense work, UAH 6411.2 thousand for the continuation of the program "Safe City of Rivne" - installation of street video surveillance.

Basically, this is the development budget. Capital expenditures were not included. In March, having indicators of budget implementation in 2022, having survived the difficult winter months, we will plan these budget items.

Viktor Shulga, head of the city budget and finance department:

- Own revenues of the hromada are what we will earn - UAH 2.5 billion, there will be a subvention from the state budget of UAH 520 million. The main source of income is the tax and personal income tax, the calculated amount for 2023 is UAH 1.7 billion, which is almost 7% less than the expected revenues in 2022. According to the forecast of the Ministry of Finance, the drop in revenues from this tax next year is 88.2% of the expected revenues. Our project includes 93.1%. The calculation of this tax takes into account the increase of the minimum wage to UAH 6,700 as well as the preservation of the tax on the salaries of the military personnel. Indexation of wages for employees of budgetary institutions is not provided this year.

General fund revenues. The income tax on communal property enterprises is projected at UAH 383 thousand. Excise tax on retail sales of excisable goods - UAH 180 million (UAH 48 million from the sale of alcohol and UAH 132 million - from tobacco products paid by manufacturers and importers). As for the excise tax on fuel, it is projected to receive UAH 59.4 million from imported fuel and UAH 2.4 million from the tax on fuel produced in Ukraine. The tax on real estate is planned to be received in the amount of UAH 60.7 million. The land payment is planned to be UAH 128.3 million. The single tax is also an important source of revenue, we plan to receive UAH 353.5 million. We have a privilege for taxpayers of the 1-2 groups until the termination or cancellation of martial law. Therefore, the calculation takes into account that about 50% will be conscientious and will pay, and 50% will use the privilege.

The state provides UAH 520.6 million for the educational subvention, which is UAH 30 million less than that in the last year. The distribution is carried out by the Cabinet of Ministers. This amount is not enough, and we are forced to add money from the local budget to close the gap in the salaries of teachers.

Special fund revenues. Development budget revenues amount to 12.3 million. Revenues at the expense of trust funds - 759 thousand (704 thousand - environmental fee and 55 thousand - proceeds from interest on the loan). Own revenues of budget institutions amount to UAH 59.6 million.

Expenditures: expenditures of the general fund amount to UAH 3 billion 13 million. Expenditures of the special fund amount to UAH 141.5 million, including the development budget - UAH 81.1 million. Expenditures for wages of employees of budgetary institutions amount to UAH 1.5 billion.