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Problems of the budget process in territorial communities were discussed in Chernihiv
On November 1, the “Clean Politics” press center hosted a roundtable discussion “Budget Process 2019 in United Territorial Communities of Chernihiv Oblast: Challenges and Prospects”.
The following issues were proposed for discussion:
1) features of the completion of the 2018 budget process,
2) what awaits the budgets of ATCs in 2019,
3) public (participatory) budgeting as a mechanism for public influence on the budget process at the local level.
Experts from the Chernihiv regional branch of the Association of Ukrainian Cities, the Chernihiv Center for Local Self-Government Development, representatives of territorial communities, public activists and the media were invited to participate in the event.
The event was opened by a representative of the Chernihiv Public Committee for the Protection of Human Rights
Kateryna Dankova
, who said that the event was organized within the framework of the implementation of the project “Public Budget – a Dialogue Platform between the Community and Local Authorities”, according to which a number of activities (trainings, visits for expert support, etc.) were held for the benefit of communities in order to convey to people the idea that the public participatory budget is a good democratic mechanism for involving citizens in management and solving urgent issues at the local level.
Finally, Ms. Kateryna handed over the floor to the budget consultant of the Chernihiv regional branch of the Association of Ukrainian Cities
Mykola Silenko
, who, as a competent specialist, was invited to continue moderating the event.
– Before talking about the 2019 budget, we need to talk about this year’s budget. Many thanks to the Chernihiv Public Committee for the Protection of Human Rights, which acts as a platform for representatives of local governments and lobbyists, which allows them to prove their position, discuss problems and prospects for communities. It is such platforms that allow us to show that united territorial communities are also a great responsibility to the population, – noted
Mykola Silenko
.
Today, there are many problems in communities: redistribution of subventions, forest lands – For Chernihiv region, it is already traditional to end the year with a lack of finances (after all, 200 million UAH of stabilization subsidies are provided this year, which is ten times less than last year), where the main problem is financing secondary-level medicine. After all, due to the reduction in the population in the districts, medical subventions are also decreasing. If we talk about Koryukivka, then we are forced to finance the powers delegated by the state from the local budget, which is why other sectors do not receive funds, – Koryukivka Mayor
Ratan Akhmedov
spoke on the first question on the specifics of the completion of the 2018 budget process. – This year, we also had a problem with financing medicines for insulin-dependent citizens (about 600 thousand UAH). Our problem is also the fact that they are trying to close the issues of poor ATCs at the expense of rich communities. For example, when a community received a surplus of educational subventions due to the optimization of the education sector (which could have been used to solve other issues), they took it away and gave it to another community where such optimization was not carried out (which is unacceptable and stimulates the growth of the “creditor’s fund”).
“Regarding the future budget of the country in 2019, I will say that I am not optimistic, although our local budget can still find reserves in the land sector, in the payment of salaries, in the road fund, in excise goods, but the problem remains with the division of “budget workers” into 2 types (when, for example, school teachers receive a proper salary, and out-of-school and preschool workers have low wages. Similarly, with the secondary level of medicine, where surgeons have a salary of 6-7 thousand UAH, and primary care family doctors already receive 15-20 thousand UAH. salaries due to the fact that the Koryukiv Primary Health Care Center is the only one in the region to have signed an agreement with the National Health Service), – added
Ratan Akhmedov
. – But the problem of the region is that local deputies do not vote for the reform of medicine and education due to their reputational losses.
As for the participatory budget, it is actively implemented in specific projects (people show activity and creativity, both in the city and in the countryside, as a result of which additional projects are accepted even outside this budget), and for the next year from 300 to 500 thousand UAH are planned for this, while the general benefit of the participatory budget is the combination of people in communication and a common idea.
– The financial system depends on other factors, and its “disease” has its own reasons, because for Chernihiv region at the moment the main problem is the lack of a leader in the region who could solve urgent issues, and for the state in general the instability of budgeting is a problem. Regarding the distribution of the budget at the local level, there is indeed injustice in the uneven differentiation of subventions, which is why effective ATCs suffer, and the regional state administration ultimately retains part of the subsidies that could go to communities (there is no such practice in other regions), – believes the financial advisor of the Chernihiv Center for Local Self-Government Development
Oleksandr Melnyk
. – Currently, the Chernihiv region, despite the opposition of the state authorities, is a leader in decentralization reform, but there are doubts whether there will be further funding for the fields of medicine, education, culture, etc. (especially since no funding is provided for the primary care level in 2019 if the medical institution has not concluded an agreement with the National Health Service). Also positive are the increased opportunities for communities from personal income tax, land reserves, excise tax, and there is hope for a transparent distribution of additional subsidies, and Chernihiv also had “know-how” regarding attempts to transfer tasks that are not typical for it to the participatory budget (arrangement of parking lots, adjacent territories, etc.).
“The problems in communities are similar and the most important of them are delegated financial powers to finance medicine, education, culture, landscaping, etc., for which the AH does not have enough funds, because financial practice often differs from forecasts, – reported the head of the financial department of the Horodnyansk City Council Volodymyr Pinchuk. – As for our practice, for example, from the planned funds for road repairs (thanks to 20% from the road fund), so far, we have not received anything (because those funds went to settlements that were not included in the AH). And in financing education, we have a shortage of 105 thousand UAH. (even with the optimization of education), although they received positive dynamics in revenues to the local budget. Regarding the participation budget, currently, we are working on projects that are useful for the community, for which we will be able to allocate up to 500 thousand UAH. “.
– Our community has an increase in budget revenues, which was achieved thanks to fruitful cooperation with taxpayers and resolving issues with land (unclaimed shares). But it will still be difficult to cope with the growth of prices and financing the education, medicine, and culture sectors, – said the head of the Olyshivska AH
Serhiy Malets
. – Regarding the participation budget, we (depending on future revenues) plan from 50 thousand UAH. for creative human ideas (because even pensioners offer their interesting and useful ideas for the AH).
All participants of the meeting concluded that decentralization reforms are continuing and are already having their positive effects in communities, despite a number of problems and misunderstandings, disputes and shortcomings, little experience and unclear prospects.
The event was organized by the Chernihiv Public Committee for the Protection of Human Rights as part of the implementation of the project “Public Budget – a Dialogue Platform for Government and Community” with the support of the National Endowment for Democracy (NED).