In Lviv, due to systematic delays in Treasury payments, an acute problem has arisen regarding the payment of wages to municipal utility workers, the operation of public transport, and the implementation of infrastructure construction projects. Mayor Andriy Sadovyi stated this in a commentary to RBC-Ukraine for the article "Budget crisis or 'manual control': why the government is blocking money for communities and what it threatens cities with." According to him, as of October 28, the State Treasury had not processed 4,231 payments for the Lviv community, totaling 901.7 million hryvnias, of which 554.1 million represent development budget funds.
Money in the accounts, but impossible to access
The key problem, as Sadovyi emphasizes, is not the lack of funds in the local budget, but the inability to dispose of them in a timely manner. "The city has money. It is sitting in the accounts, but the Treasury is not processing the payments. This primarily affects the people who perform work for the city," noted the mayor. As a result, municipal utility companies are forced to accumulate debt and take out loans to continue operations and prevent service disruptions. Due to unpaid wages, utility workers and street cleaners are beginning to resign, creating a threat to the daily functioning of the urban environment.
Transport and construction: what is under threat
Payment delays are already creating a risk of reducing the number of buses and trams on Lviv's public transport routes. Furthermore, payment processing issues complicate the realization of major construction projects, where meeting technological deadlines is critical. Among the objects at risk is the new overpass at the intersection of Shevchenko and Kovcha streets. The mayor emphasized that while defense funding is a priority during wartime, communities are also obligated to fulfill their commitments to residents: ensuring the operation of critical infrastructure, paying wages, supporting military formations, carrying out repairs, and preparing the city for winter.
Scale of the problem: 20 billion hryvnias nationwide
The situation in Lviv, according to the Association of Ukrainian Cities (AUC), is part of a broader crisis: delays in payments from local budget accounts are affecting communities across all regions of the country. The total volume of unprocessed Treasury payments, according to AUC estimates, is about 20 billion hryvnias. Lviv has sent a demand to the government and the Ministry of Finance to provide a clear and predictable mechanism for Treasury payments, which would allow communities to plan expenses, settle with contractors on time, and support the uninterrupted operation of municipal services.
Government position: cash gaps and defense priority
The government explains the delays by a shortage of funds in the unified treasury account and the need to prioritize defense financing. Due to temporary cash gaps, the State Treasury applies a payment queue, which results in capital expenditures and some civilian expenses being postponed. At the same time, as noted by the Lviv mayor's office, such a practice creates additional risks for critical infrastructure ahead of the winter season, when the burden on utility systems multiplies.
