Prescheduled decommissioning of ChNPP in 2000 led to necessity of full reformation of the budget system by the Local Authorities in the framework of Budget Code of Ukraine. The Code forms financial relations between the state and territorial entity.

In 2001 almost all objects of social infrastructure were transferred to municipal property, which led to essential increase of expenditure part of the budget to maintain these objects.

Ukrainian Ministry of Finance uses formula calculation to define the scope of expenditure part in the local budgets. This calculation is based on the indicators of the previous period without taking in account the actual need in resources necessary for maintenance of the social infrastructure.

Social Ifrastructure of the Town

Considering the analytical estimations, the Budget provision of the minimum need of the social sphere financing was 61% in 2002 and 69% in 2003 which is in money terms is about 5.4 million hrivnas a year.

In addition, lack of money for maintenance of social field and decrease of the Town budget expenditure part of 2002 and 2003 comparing with 2001 is also explained by elimination of the Town profit to the State budget.

Budgetary Provision on Profits and Expenses per capital in Slavutich

Paradoxically, from one side Slavutych has got high indicators in gathering taxation duties to the budget, comparing with other regions of Ukraine, but from the other side formula approach in formation of the expenditures does not allow using gathered funds for needs of the Town.

Difference between profitable and expenditure parts goes to the State budget. In this way Slavutych becomes a "donor" to other regions, although the Town feels lack of funds for maintenance of its own infrastructure.

Owing to efforts of local authorities situation in 2003 was partly stabilized due to suspending of extracted to the state budget part and the Town budget additionally received funds in total sum 2.2 millions hrn.

Furthermore, Slavutych as a town-satellite of Chernobyl NPP received special regime of law regulation, enacted in July 2003, which has to foresee in the Ukrainian Law on the State budget of Ukraine special subventions for the Town budget purposely for support of its social infrastructure.

Transfers from regional and state budgets

Conversion to programme-purpose method of Town budget formation started in the beginning of 2003. Thus, in 2003 5 programmes of social and financial-material directions were approved for expenditures form the local budget. Programmes of 2004 also foresee improvement and development of social sphere.

To get additional information contact:

budget financial issues:

Town revenue, tel. 2-96-85.