Communities across Ukraine are facing an acute problem with delayed treasury payments. Despite having funds available in local budgets, the State Treasury Service of Ukraine has for more than a month failed to process part of the financial transactions. This is jeopardising proper preparations for the heating season and the stable operation of municipal utilities. The situation, including in Drohobych, was reported by the financial department of Drohobych City Council.
According to the financial department, as of 1 October in Drohobych the amount of unpaid expenditures under non-protected budget lines exceeded UAH 28 million. These cover the following areas:
- purchase of equipment — UAH 1,700.9 thousand (including current expenditure — UAH 1,242.3 thousand, capital — UAH 458.6 thousand);
- payment for services, including those related to wages — UAH 15,369.8 thousand;
- travel expenses — UAH 102.7 thousand;
- current transfers to enterprises — UAH 3,729.9 thousand;
- other current expenditure — UAH 152.3 thousand;
- capital repairs — UAH 5,965.3 thousand;
- capital transfers — UAH 1,065.2 thousand.
By 12 October the volume of blocked payments had increased by a further UAH 12,612.4 thousand, bringing the total to UAH 40.7 million. The city council emphasises that a similar situation has arisen in other communities across Ukraine.
Local self-government bodies warn that prolonged blocking of settlements may result in fines and penalty interest for late payment for gas, electricity and taxes. In addition, delays in paying for services and wages threaten the uninterrupted operation of municipal utilities and create additional risks for their managers.
The Mayor of Drohobych, Taras Kuchma, together with other community leaders, in particular within the framework of the activities of the Association of Ukrainian Cities, is appealing to the Cabinet of Ministers and Members of Parliament, demanding that the situation be resolved as a matter of urgency. He stresses that communities are not asking for additional funding, but only for the ability to make full use of their own resources, which have already been accounted for in local budgets.
“We call on the responsible state authorities to respond without delay and ensure the timely execution of treasury payments,” stresses Taras Kuchma.
Drohobych City Council notes that behind every unpaid invoice there are the specific needs of residents: preparation for the heating season, the functioning of communal infrastructure and the provision of essential services. Communities are calling for financial transactions to be unblocked so that obligations to citizens can be met on time and additional financial and organisational losses can be avoided.