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More than 5 million GEL left unspent in Dedoplistskaro municipality budget

16.03.2018

 
 
Reginfo.ge

In 2015-2016, more than 5 million GEL was left unspent in Dedoplistskaro municipality budget, for what the local population could not enjoy the benefit from the allocated funds – the conclusion of the State Audit Office reads.

According to the SAO, by January 1, 2015, the Dedoplistskaro municipality had unspent 2 305 700 GEL. The municipality administration decided to use 2 294 300 GEL from this amount but by the end of 2015, the remnant was reduced only by 169 800 GEL and consequently 2 135 900 GEL was left unspent. Among it, 852 900 GEL was free remnant.

In 2016, the municipality administration planned to spend the remnant of 2 073 200 GEL but throughout the year they accumulated another 831 700 GEL and in the end of the year they had 2 967 600 GEL unspent. 2 367 700 of it was free remnant. 

The increased amount of budget remnant was caused by the fact that in 2015 the plan for fees was implemented with 89,3% and plan for income was implemented with 114, 8%. In 2016, the tax plan was implemented with 87,3% and the income plan was implemented with 124, 7%.
Representatives of the municipality administration clarified that by the end of the fiscal year, the unspent budget remnants are caused by over-fulfillment of the income plan. The Audit Office believes it is caused by incorrectly planned tax index. 

Namely, according to 2011-2016 data, the municipality received more than 2, 2 million GEL as income tax but in 2015-2016, the municipality reduced the income payment to 1,5 million GEL.
As it was found out, the municipality reduced the proposed index based on the recommendation of the Ministry of Finances. According to the letters received from the Ministry, for 2015-2016 the expected amount of the paid income tax would amount to 1,3 million GEL in Dedoplistskaro municipality.

According to the Audit Service assessment, the proposed figures were only recommendations from the Ministry of Finances and the municipality administration could reject the proposal of the Ministry and plan its incomes according to previous years. 

The State Audit Office concluded that the municipality administration could not timely implement the projects, could not properly plan the expected income and free remnant expenditure, which demonstrates ineffective management of financial resources. 

Nikoloz Janiashvili was the Dedopoplistskaro municipality governor since 2014. Georgian Dream nominated him as a mayor candidate during 2017 municipal elections and he won. Nikoloz Janiashvili is ally of the current single mandate MP from Dedoplistskaro-Signagi municipality Irakli Shiolashvili. 

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