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Reserve Funds Do Not Meet Their Goals

April 22, 2010
 Gela Mtivlisvhili, Kakheti

In accordance to the organic law of Georgia about Local Self-Governance, the aim of the reserve funds is funding extraordinary and urgent expenses. The reserve fund is created mostly for the liquidation of emergency situation; however, district governors spend funds from the reserve budget on entertainment, PR-campaigns and on the activities which are beyond the competence of the local authority.

In accordance to the law, the amount of the reserve fund shall not exceed 2 % of the district budget. The municipality board regulates the expenditure of the reserve fund.

In 2009, there was 40 000 GEL in the reserve fund of the Sagarejo district budget; in 2010 it has increased up to 50 000 GEL. Based on the resolution of the municipality board, the district governor had to spend the money of the fund for the liquidation of the results of natural disaster; for the liquidation of the sanitary-epidemic cases; for the expenses that were not envisaged during the discussion of the district budget.

The reserve fund funded the activities such as a purchase of gas-heaters for the Sagarejo district children’s hospital and for Sagarejo district church – 1 495 GEL; for the construction of the memorial to Giorgi Karakozashvili, killed during the war for the territorial integrity of Georgia – 5 598 GEL; for the purchase of various equipment for youth activities – 455 GEL; for the veterinary supervision of street animals in Sagarejo – 5 640 GEL; for the purchase of 50 copies of the magazine “Kontinentali” – 660 GEL; for the cleaning of the sewerage system in the patriot camp in Sagarejo – 950 GEL; for the purchase of electricity goods to repair electricity system in IDP shelter – 1 357 GEL; for the announcement and advertisement in the newspaper “Inter Club” – 600 GEL; for the participation of singer Irina Bairamashvili, participant of GeoStar from Sagarejo in the New Year concert – 625 GEL, etc.

It is noteworthy that district office of the food safety, plant protection and veterinary within the ministry of agriculture is in charge to take care of street animals in the district. This office is completely funded from the central budget. Besides that, complete rehabilitation of the IDP shelters was funded from the central budget in 2009 and the Ministry of Refugees and Accommodation is entitled to fund all kind of rehabilitation activities in the shelters.

Besides that, funds of the reserve funds are envisaged for increased administrative expenses. In 2009 budget of Sagarejo district administrative expenses exceeded 20 % of the total budget. Despite that, district governor allocated money from the reserve fund to give awards to the employees of the public institutions. For example, teachers of the music school Neli Kanchashvili and Giorgi Shakarashvili were awarded with 600 GEL: 1 700 GEL was gifted to the actors of Sagarejo public theatre.

Reserve fund of the Lagodekhi district was 71 000 GEL in 2009. According to the district administration, 60 821 GEL was spent from the reserve fund for the liquidation activities of the natural disaster in Lagodekhi district. The rest of the funds remained unused.

As a result of the natural disaster in 2009, village of Uzuntala was most damaged in the district. The flooded river filled houses, yards and plots with stones and sand. The water completely destroyed one house. The family of 22-year-old Jeyhun Ramazanov with two children is still homeless. Local authority refused them to allocate funds for the alternative accommodation. The interim distinct governor Dimitri Loladze said the Ramazanovs did not have their house registered in the public registry and did not hold any documents. The local government did not satisfy the request of the Uzuntala residents – to clean their plots from stones. Interim district governor said “population should clean their plots from stones themselves.”

In comparison to 2009, in 2010 Gurjaani district reserve fund has doubled; it increased at 44 200 GEL and amounted to 94 200 GEL. In 2009, the money of the reserve fund was spent on the activities which are beyond the competence of the local self-government. For example, based on the district governor’s resolution, 4 100 GEL was spent on the organization of Vintage – 2009; for the fuel of HQ and commission members. Reportedly, the ministry of agriculture creates special HQ in Gurjaani every year to coordinate the vintage process in the district; the HQ is funded by 60-70 thousand GEL from the ministry budget.

In 2009 the reserve fund in Telavi district was 100 000 GEL. In 2010 the reserve fund is the same 100 000 GEL. The money of the reserve fund was spent on entertainment in Telavi too.
For example, in 2009 2 026 GEL was spent on the celebration of King Erekle’s Day in Telavi; 3 250 GEL was spent on supplying each family with mineral fertilizer in the district.

Experts of the Georgian Center for Strategic Researches and Development think the local budget has extra expenses to fund the activities which are beyond the competence of the local self-government; it contradicts the principles of independence of the local budget.

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