Control and dialogue: The Accounting Chamber, the relevant Subcommittee of the Verkhovna Rada and the managers of funds discussed the challenges of implementing the 2025 State Budget in the first quarter

At the meeting of the Subcommittee on State Financial Control and Activities of the Accounting Chamber of the Verkhovna Rada of Ukraine Committee on Budget June 26 we considered the Conclusion of the Accounting Chamber on the results of the analysis of the implementation of the Law on the State Budget of Ukraine for 2025 in the first quarter and discussed the current budget situation. 

At the suggestion of the Accounting Chamber, the main administrators of budget funds joined the discussion of this issue: representatives of the Ministry of Finance of Ukraine, the Ministry of Defense of Ukraine, the Ministry of Internal Affairs of Ukraine, the Ministry of Environmental Protection and Natural Resources of Ukraine, the Ministry of Development of Communities and Territories of Ukraine, the State Agency for Infrastructure Restoration and Development of Ukraine.

As noted by the Head of the Subcommittee, Ihor Molotok, based on the results of a detailed analysis of the Opinion, the Subcommittee agreed with the need for the presence of representatives of individual main spending units at the meeting.

The Head of the Accounting Chamber, Olga Pishchanska, presenting the Opinion on the results of the analysis of the State Budget-2025, announced its key indicators: an increase in revenues by 44%, an increase in the share of non-refundable aid receipts by 2.6 times and at the same time an underperformance of the plan for the implementation of expenditures of the general fund of the state budget by 14%.  

«The Government and some main spending units did not comply with the deadlines established by the Budget Code of Ukraine for approving procedures for the use of funds – 73.8% of such documents were not approved on time. Also, 28%  passports of budget programs – were not developed and agreed with the Ministry of Finance on time. This led to the failure to implement the planned expenditures for January – March and the provision of loans for a total amount of 3.3 billion hryvnias», – emphasized the Head of the Accounting Chamber.

Olga Pishchanska named the main administrators who, as of 06/01/2025, had not submitted to the State Treasury Service of Ukraine the approved passports of budget programs necessary for carrying out planned expenditures and providing loans. These are the Economic and Financial Department of the Secretariat of the Cabinet of Ministers of Ukraine, the Ministry of Education and Science of Ukraine, the Ministry of Health of Ukraine, the Ministry of Environmental Protection and Natural Resources of Ukraine, the Ministry of Agrarian Policy and Food of Ukraine, the Ministry of Development of Communities and Territories of Ukraine, the State Agency for Infrastructure Restoration and Development of Ukraine, the Ministry of Culture and Strategic Communications of Ukraine, the Ministry of National Unity of Ukraine and the State Property Fund of Ukraine.

Separately Olga Pishchanska pointed out the risks due to the continued growth of overdue receivables (by 23.6%),most of which concerns the activities of the Ministry of Defense of Ukraine. The Head of the Accounting Chamber also drew attention to the increase in payables of administrators and recipients of state budget funds, in particular the Ministry of Internal Affairs of Ukraine - 13.1% of the total amount of payables (as of 01.05.2025).

In turn, within the framework of the discussion of these issues at the meeting of the Subcommittee, representatives of the Ministry of Finance presented the results of eliminating the shortcomings identified by the Accounting Chamber, in particular, they discussed the status of approval of budget programs and measures to reduce overdue receivables and payables.

Representatives of other fund managers also informed the Subcommittee about the work on the identified shortcomings. Among other things, representatives of the Ministry of Defense reported a decrease of UAH 10 billion in receivables and an increase in the direction of claims work. Representatives of the Ministry of Internal Affairs also informed about the reasons for the formation of payables related to their department, and the Ministry of Environment - spoke about the implementation of measures for the management of radioactive waste. Separately, representatives of the Ministry of Development informed the meeting participants about the approval of budget program passports and changes in the procedure for using funds, etc.

Following the discussion, the Chairman of the Accounting Chamber noted the importance of accelerating the response of departments to identified systemic shortcomings that have not been eliminated for years.

«Today we discussed the implementation of the state budget in the first quarter. Now – it is already the middle of the year, and the passports of individual budget programs have not even reached the point of approval. As for two programs, their implementation still requires separate legislative regulation. As a result of such a long-standing trend, departments do not have time to prepare and conclude contracts qualitatively at the end of the year, so funds are redistributed chaotically and in a hurry, or returned to the budget. As a result, we have non-implementation or improper implementation of the budget. Therefore, I am glad to start a serious and direct dialogue to eliminate these shortcomings. I hope that the issues we have raised will be taken into account and appropriate conclusions will be drawn, – noted Olga Pishchanska.

The Chairman of the Subcommittee, Ihor Molotok, also emphasized the importance of communication with the objects of control and called on representatives of departments to provide written answers to the questions raised during the discussion.

Following the results of the discussion, the Subcommittee recommended that the VRU Committee on Budget Issues take note and take into account in its work the Opinion of the Accounting Chamber on the results of the analysis of the implementation of the Law on the State Budget of Ukraine for 2025 in the first quarter and information on the current state of implementation of the state budget in 2025, as well as provide recommendations to the Cabinet of Ministers of Ukraine to eliminate the identified shortcomings.

As a reminder, the Accounting Chamber adopted at its meeting on June 10.

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