MPs have imposed fines on executors of defense contracts
16 January 14:21
The Verkhovna Rada has amended the Budget Code to address public finances, thus fulfilling another obligation to the International Monetary Fund. This was reported by the chairman of the parliamentary committee on budget Roksolana Pidlasa, Komersant ukrainskyi reports.
As noted in the explanatory note to the document, its adoption is due to the need to update the provisions of the Budget Code, taking into account the provisions of the draft State Budget of Ukraine for 2025 and the adopted amendments to sectoral legislative acts.
What are the innovations in question?
– prioritization of most capital expenditures at the government level and concentration of financial resources on the most important projects, rather than dispersal across hundreds of objects in dozens of budget managers,
– projects will be selected according to uniform rules and criteria, rather than separate procedures for each fund or subvention,
– only those objects that have been evaluated and recognized as feasible and necessary to implement will be financed from the budget, which eliminates personal political influence on the distribution of funds,
– the need for a single portfolio of investment projects that can be offered for funding to international donors,
– the decision-making process for public investment projects and the results achieved will be displayed online.
Also, as Roksolana Pidlasa emphasized, several important amendments have been taken into account:
– penalties for unscrupulous suppliers for delaying the supply of weapons to the front have been reinstated,
– the range of entities that can apply for youth grants has been expanded, which should ensure more competition and better results,
– the issue of repayment of debts of local budgets of 2008-2009 to the state budget has been removed.

How will unscrupulous arms suppliers be fined?
The Budget Committee reviewed the relevant amendments the day before and supported the provisions on sanctions for violators of defense contracts.
These are the following sanctions:
– for violation of the terms of the obligation regarding the quality (completeness) of goods (works, services), a fine of 20% of the cost will be levied,
– a penalty of 0.1% of the cost for each day of delay will be charged for violation of the terms of fulfillment of the obligation, and for a delay of more than 30 days, an additional penalty of 7% of the cost will be charged.
According to Roksolana Pidlasa, despite the abolition of the Commercial Code, fines will continue to encourage suppliers to fulfill defense contracts on time and in a quality manner, and given that a single defense contract can be worth tens of billions of hryvnias, we are talking about significant amounts.