Opposition: Kiev Is Deep In Debt

KIEV, Ukraine -- One of the opposition leaders in the city council Dmytro Andriyevsky warned on Oct. 28 that municipal debts are growing with a catastrophic speed.

Kiev city council Dmytro Andriyevsky (L) and Kiev Mayor Leonid Chernovetsky.

“The income part of the budget is short of nearly Hr 6 billion, and the situation is worsening by the day,” said Andriyevsky.

He said Kiev has so far failed to collect Hr 1.244 billion in income taxes, Hr 1.07 in planned proceeds from the sale of land and other assets, and what the budget refers to as “other incomes” worth Hr 2.1 billion.

“The fantastic budget projects and promises of Mayor Leonid Chernovetsky, as we had warned, turned out to be soap bubbles,” Andriyevsky said. “By today, the city finances are short of every third hryvnia planed for spending.”

He said none of the mayor’s novelty ideas for filling the budget, including expensive dinners with city officials businessmen are supposed to pay, the sale of city-owned cars, increases in parking fees and introduction of new fees for various municipal services have brought no income to the budget.

As a result, the city’s development projects are under-financed by Hr 875 million, while social expenditures are Hr 677 million short of target, and city medicine is Hr 204 million short. Moreover, the city owes Hr 2 billion to the state.

“Budget predictions for the fourth quarter are unfavorable. Kiev, with Chernovetsky’s effort, is flying into a debt pit,” Andriyevsky told Ukrayinska Pravda.

Source: Kyiv Post