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 Massive Delays of State Salaries – Government Lacks 3 Billion

In the past few months increasingly alarming reports come in from all regions of Ukraine about the delays in payment of salaries to state employees reflecting the budget crisis in the country.

According to experts, if this goes on, then teachers, doctors, social workers may celebrate the New Year at an empty table, reports Podrobnosti.

The reason for all the budget problems is its huge deficit which, according to official figures, constitutes 40 billion UAH and unofficial - 80 billion. The first who started talking about delays were janitors, teachers and doctors from the regions. They have been promised the money they earned in January next year. However, the amounts to be paid are not specified. Debt epidemic spread even in the capital even though in Kiev the government funding is traditionally more stable than in other regions. In Kiev, the budget crisis hit doctors in the first place who are already receiving meager salaries. The Association of Ukrainian Cities which unites data from all local councils estimated the amounts owed to state employees.

"Starting from Lviv and ending with Donetsk for two months three billion hryvnia is lacking- it's only for salaries to state employees," said Myroslav Pittsik, vice-president of the Association of Ukrainian Cities. For its part the State Treasury claims that money to pay for state salaries is transferred on time. But the problem, they say, is the negligence of local authorities.

"Вместо того, чтобы придерживаться рекомендаций правительства о жестком режиме экономного и рационального использования бюджетных денег, власть на местах продолжает использовать деньги на непервоочередные нужды", - говорится в письме Государственной казначейской службы Украины. По словам эксперта по вопросам социальной политики центра имени Разумкова Павла Розенко, проблемы в дальнейшем только будут обостряться, а долги перед бюджетниками будут только увеличиваться. "За десять месяцев был использован полный ресурс государственного бюджета Украины. И это привело к тому, что в конце года фактически у правительства нет реальных денег, чтобы выполнить все социальные обязательства", - сказал он.

"Instead of sticking to the recommendations of the government on austerity and rational use of budget funds, local authorities continue using money on low priority needs," said a statement of the State Treasury Service of Ukraine. According to the expert of Razumkov Social Policy Center Pavlo Rozenko, problems in the future will only be exacerbated, and debts to state employees will grow. "In ten months full resources of the State Budget of Ukraine had been used. And this led to the fact that in the end the government has no factual money to fulfill all social obligations," he said.

On November 6, the Parliament increased the budget deficit limit from 31.1 billion hryvnia to 38.8 billion hryvnia, including the general fund state budget deficit limit from 27.2 billion hryvnia to 34.9 billion hryvnia.


 
 
 
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