Arrears of wages to public sector employees who are funded from local budgets at the beginning of December 2012 amounted to over 1.3 billion.
This was disclosed by the State Financial Inspection.
According to their data, as of December 10, cases of unpaid wages have been detected in most regions of Ukraine.
"Among the causes of debt one should note unnecessary payments which still have been made, despite the lack of funds to pay salaries. In addition, additional cash resources have been expended without considering the priority of spending. In other words, being able to pay wages (which belongs to the protected expenditure), local managers have financed, say, capital or other unnecessary and sometimes quite questionable expenditures. Such facts were detected in a number of regions and in some city and district budgets of Odesa, Cherkassy, Ivano-Frankivsk and Ternopil regions. Sometimes the amount of unnecessary expenditures amounted to tens of million," – reports the State Financial Inspection.
Another cause of debt is the fact that local authorities do not pay enough attention to budgetary institutions network optimization, which causes an increase of local spending and hampers optimal and efficient allocation of financial resources in the regions.
Currently the State Financial Inspection is checking all regional and district budgets, the budgets of cities of regional subordination and budgets of Crimea, Kyiv and Sevastopol.