On January 13, the session of the Lutsk City Council adopted the city budget for 2005. The draft city budget for 2005 previously approved by the executive committee in the amount of revenues and expenditures of 147 million 342 thousand hryvnias, the deputies increased by 3 million 220 thousand hryvnias at the expense of additional expected revenues from the sale of non-agricultural land and communal property. In addition, as the city mayor Kryvytskyi put it, the revenue item "tax on the profit of communal property enterprises" was "inflated." These funds are mainly designated for additional financing of education and healthcare. In addition, on the proposal of the head of the "Our Ukraine" faction Dmytro Moskvych, the budget for youth programs and allocations for youth housing lending were increased. The total amount of investments from the city budget under the latter item is 300 thousand hryvnias.
The upper basket of the budget is state financial transfers delegated for implementation to local self-government bodies. Expenditures from it are directed to the maintenance of the budgetary sphere according to the system calculated per one resident. For education next year, 48 million 389 thousand hryvnias are foreseen, of which 40 million 640 thousand are for the remuneration of educators. The norm of financial provision per one pupil is 1,374 hryvnias (for comparison, in 2004 – 972 hryvnias). Expenditures of the city healthcare sector in 2005 are foreseen in the amount of 25 million 762 thousand hryvnias, of which 21 million 740 thousand hryvnias are for remuneration. Budget provision per one resident – 122 hryvnias (in 2004 – 94 hryvnias). Culture expenditures amounted to 3 million 765 thousand hryvnias, of which 2 million 959 thousand hryvnias for salaries. Per one Lutsk resident there are 12 hryvnias 57 kopecks (9 hryvnias 30 kopecks this year). For physical culture and sports, 1 million 023 thousand hryvnias are foreseen, including 650 thousand hryvnias for wages. The financial norm per one person – 2 hryvnias 23 kopecks, which is 0.7 hryvnias less than in 2004.
The lower basket of the budget is funds from local taxes and fees, which are directed to own powers. Practically 50% of these finances will be directed to the support of budgetary sectors. Namely – about 600 thousand hryvnias – for the purchase of medical equipment, 1.5 million hryvnias – for the financing of out-of-school education institutions, for which state funds have not been allocated for a long time. From the lower basket, the culture and sports sectors will be additionally financed for the maintenance of libraries and children's and youth sports schools. At the expense of local funds, the Center for Early Social Rehabilitation of Disabled Children and the territorial center for servicing lonely citizens will be fully financed.
The most active session discussions unfolded around the financing of healthcare and communal services. In particular, many questions were raised by the amount of debts of the communal services for completed works. Together with the debts of the capital construction department, it exceeds 13 million hryvnias. By the decision of the session, this indebtedness was recognized as budgetary, and about three million hryvnias are planned for its repayment this year. Attempts by individual deputies to increase allocations for the repair of roads and roofs at the expense of other items ran into stiff and sufficiently reasoned resistance from the mayor and were not supported by the majority of their colleagues.
It is expected that the voted city budget for 2005 will be refined, since the receipt of funds from the regional budget is expected, as well as adjustments to the state budget in February-March.
As for the report on the progress of the implementation of last year's budget, according to the information of the head of the financial department Oleh Ishchuk, it can be considered successful, since the financial year was completed without debts on wages, benefits and subsidies, energy carriers, the indebtedness of previous years on expenditures of the housing and communal services department decreased by 4 million hryvnias. In terms of revenues, last year's budget was implemented at 100.9%, in terms of expenditures – at 100.5%. The general fund of the city budget of 2004 compared to the plans was overfulfilled by 15%, and the city development budget and capital investments – by 235% and 230% respectively.