«Money is tight», — Kim warns of possible bonus cuts due to lack of funds in the budget

Vitalii Kim at a session of the Mykolaiv City Council. Photo: NikVesti

The situation with budget revenues is tense in Mykolaiv region, and the region may cut bonuses and additional payments to public sector employees.

This was reported by Vitalii Kim, head of the Mykolaiv Regional State Administration, on «News.Live».

According to him, there is not enough money even for protected items.

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«The money situation is bad now. There is not enough money even for protected articles. We may have to cut bonuses and additional payments completely. Unfortunately, this is the reality now», said Vitalii Kim.

According to him, the region plans to prioritise the protection of critical infrastructure during the winter risks. All funds received from the budgets surplus will be used to strengthen defence capabilities and prepare for possible attacks on energy facilities.

«The surplus of community and regional budgets will be used for the physical and electronic protection of our critical infrastructure so that we have everything we need this winter», said the head of the regional administration.

Vitaliy Kim also said that Mykolaiv region will allocate almost 69 million hryvnias in additional subsidies from the state budget to strengthen defence capabilities and protect critical infrastructure. Part of the funds will be spent on the purchase of fuel, materials for reconstruction work and the purchase of an electronic warfare system.

The regional budget will receive 40 million hryvnias out of 68.8 million, and 28.8 million hryvnias will be allocated to four communities in the region: Halytsynove village, Horokhivka village, Mykolaiv city and Pervomaisk settlement.

The funds can be used for the key needs of the frontline regions, including

— construction and arrangement of shelters;
— urgent emergency repair and restoration works;
— construction materials to restore damaged facilities;
— repair of heat, gas, water, sewage, heating and power grids;
— protection of critical infrastructure facilities.

Lack of funds in Mykolaiv's budget

All budget payments have been suspended in Mykolaiv, sources in the Mykolaiv City Council told NikVesti. The city's key spending units and utilities have been instructed to suspend all payments for expenditures that do not relate to protected items, such as public sector salaries and utility bills.

The mayor of Mykolaiv, Oleksandr Sienkevych, said that the city budget is looking for 60 million hryvnias for salaries and utilities.

See also the article NikVesti: Less Tax, Less City: What the PIT Cut Means for Mykolaiv