IDFI Presents Expenditures of Contingency Fund of Gov’t 2013-2017
The non-governmental organization Institute for Development of Freedom of Information (IDFI) has released a report on the Expenditures of Contingency Fund of the Government of Georgia in 2013-2017, which reads that just as much funding was allocated from the fund on holding various events as on emergency or unforeseen situations.
The NGO noted that the resources of the contingency funds should be used in emergency situations, such as natural, epidemic, ecological and other kinds of disasters, and not on holding said events.
“Additionally, money from the contingency fund is often allocated to foster unhindered functioning of budgetary institutions, or to cover a variety of ongoing expenses without indicating any underlying reasons, which raises questions about the necessity of these expenses being covered from the contingency fund,’ IDFI stated.
The organization studied the practice of spending from the contingency fund of the government from 2013 and revealed a number of problems – the provisions of the legislation provide endless possibilities to the authorities to disburse resources from the contingency fund, possible problems of budget planning and opaque spending practices.
The key findings of the NGO read that in 2013-2017, more than GEL 595 million was spent from the contingency fund of the government. During this period, the majority of the funds were spent in 2016 – more than 172 million GEL.
“The majority of the funds were allocated for covering unforeseen expenses – more than 155 million GEL (26.17% of the allocated funds). However, this category is closely followed by funds spent on various events and activities – more than 150 million GEL (25.2% of the allocated funds),” the NGO stated.
Also, at the same time, the size of the contingency fund increased by at least 80% on an annual basis when compared to the planned budget.
The IDFI says a substantial portion of the contingency fund was spent on organizing; adding it can be labeled as events of general state significance rather than on emergency or unforeseen situations, as well as the unimpeded functioning of budgetary institutions or on covering separate instances of ongoing expenses.
By Thea Morrison.