COMPENDIUM CULTURAL POLICIES AND TRENDS IN EUROPE
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Ukraine/ 6. Financing of culture  

6.1 Short overview

According to the data of the State Statistics of Ukraine, the share of household budgets spent on culture in 2013 was 2.1%, which was almost equal to the share in 2011 and 2012 (2%). This share was one of the smallest (along with Moldova and Bulgaria) in Europe. At the same time, Ukrainian households spend more on subsistence than any other European country – above 50%. Together with consumer goods, the share of household expenditure on subsistence exceeded 90% in 2011-2014.

The rise (or lack of) in the minimum wage per month UAH 1 218 (105 EUR) in January 2014 (compared with UAH 1147 – 103 EUR in January 2013) along with inflation growth and a rise in prices for main products explained the situation. In January 2015, this wage remained unchanged and has lost it weight (41 EUR). The drastic inflation growth and a rise in prices for all products will reduce, obviously, even more household expenditure for culture.

The level of public financing of culture has remained almost equal in real values at the beginning and the end of the first decade, and beginning of the second decade constituting 0.5% of GDP in 2001, 0.6% in 2010, 0.55% in 2011, 0.57% in 2012, 0.56% in 2013, and 0.55% in 2014.

In 2013, the actual culture expenditure from the state budget constituted UAH 2 302.1 million (according to other sources: UAH 2 358.7), 6.3% more than in 2012 (UAH 2 037 million). At the same time, the share of costs for development from the state budget remained small and even decreased by UAH 15.2 million in comparison with 2012, constituting UAH 56.6 million (or 2.5% of the total amount). It decreased even more in 2014. It means that the lion's share of the state budget expenditure for culture is spent on salaries, communal payments and official cultural events.

Table 7:     State cultural expenditure in Ukraine, 2007-2015, UAH million

 

2007

2008

2009

2011

2012

2013

2014

2015 (plan)

Total expenditure

888.4

1 148.3

1 196.2

1 650.0

2 037.0

2 302.1

2 196.9

2 172.5

Including expenditure for development

28.4

80.0

9.5

50.0

71.8

56.6

55.8

66.95

Share (%) in total

3.2

7.0

0.8

3.0

3.3

2.5

2.4

3.0

Source:     Ministry of Culture of Ukraine, 2013, Parliament Committee on Culture, 2015

According to the Law on the 2015 Budget of Ukraine, cultural expenditure will remain almost at the same level as in 2014 (see also chapter 5.1.3 and chapter 5.3.6), decreasing in some areas. The new cultural policy is under construction, and it will define key priorities in budget policy for 2015 (see also chapter 2.3).

Table 8:     Share of main culture expenditure in Ukraine in 2012 and 2013

Country

Year

Libraries

Museums

Music

Radio, TV, Press

Ukraine

2012

33%

7.5%

3.9%

20%

2013

34%

6.5%

3.8%

19%

Source:     Ministry of Finance of Ukraine, 2013, Parliament Committee on Culture, 2015.

Table 9:     Maximum and minimum culture expenditure in Ukraine in 2002, 2011, 2012 and 2013

Year

Highest

Lowest

2002

Libraries

Music

2011

Radio, TV, Press

Museums and archives

2012

Libraries

Music

2013

Libraries

 

Source:     State Treasury of Ukraine, 2012, Ministry of Finance, 2013, Parliament Committee on Culture, 2015.

Graph 1:   Correlation between state budget and culture budget expenses in 2010-2015 (% to previous year)

Source: Parliament Committee on Culture, 2015 (author: V. Babenko)


Chapter published: 05-06-2015

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