UAH 227.9 Million Allocated for Financing 2009 Army Operations

2009/10/2 1:51:12
KYIV, Oct. 1. 2009 (Ukrainian News/UBO) -- The Cabinet of Ministers has allocated UAH 227.9 million from the stabilization fund of the state budget to the Defense Ministry for financing the operations
of the armed forces in 2009. The Cabinet of Ministers also resolved to use UAH 46.9 million from the stabilization fund to finance provisions for military servicepersons and meeting other urgent armed force needs. The money was originally intended for creation, purchase, and modernization of arms, military equipment, and special equipment under a defense order that the government placed with Ukrainian manufacturers. The Cabinet of Ministers accepted a proposal from the Defense Ministry and the Ministry of Regional Development and Construction that the State Mortgage Institution should acquire uncompleted residential buildings worth a total of UAH 65.2 million that are due for commissioning not later than December 25 with the aim of providing housing to military personnel. The Cabinet of Ministers instructed the State Mortgage Institution to transfer the apartments bought with this money to the Defense Ministry and instructed the Finance Ministry to make provision in the state budget for 2010 for money for compensating the State Mortgage Institution for its expenditures on purchase of the apartments. The Cabinet of Ministers also instructed the Defense Ministry to submit a report on the use of the abovementioned UAH 274.8 million to the Economics Ministry, the Finance Ministry, and the State Treasury before the end of 2009 and instructed the Main Audit Department to audit the expenditure of this money within one month after it is spent. The Cabinet of Ministers also instructed the Defense ministry to ensure that the reallocation of money from the stabilization fund is agreed with the parliamentary committees on finance and banking; budget affairs; and national security and defense. According to the resolution, the provision on allocation of UAH 227.9 million will come into effect after the allocation of the funds are agreed with the abovementioned parliamentary committees while the provision on reallocation of UAH 46.9 million will come into effect upon publication of the resolution. The Defense Ministry recently said that it faced the danger of reduction of the armed forces' battle-ready subdivisions to 40-50 percent of the optimum number if funding for the army was not increased in 2009. The Defense Ministry has a budget of UAH 11.6 billion in 2009, out of which UAH 4.2 billion is to be allocated from a special fund of the state budget, into which revenues are generated from sale of surplus military equipment. However, according to information from the ministry, not more than UAH 1 billion is usually generated into the special fund per year. ###
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