7. Financing and support
Ukraine
Last update: November, 2017
Table 13: Public culture expenditure per capita in 2013 and 2016
Level | Per capita 2013 | Per capita 2016 | ||
---|---|---|---|---|
UAH | EUR | UAH | EUR | |
State budget | 41 | 4 | 56.5 | 2.1 |
Regional budgets | 31 | 2.8 | 22.2 | 0.8. |
Municipalities | 39 | 3.2 | 66.5 | 2.4 |
Total | 111 | 9.0 | 146 | 5.3 |
Source: State Treasury of Ukraine, 2017, Development Centre “Democracy through Culture”, 2017.
The visible increase in public culture expenditure per capita between 2013 and 2016 in nominal values (146 UAH in 2016 vs 111 hryvnia in 2013) shows the depreciation of the national currency when visible growth means almost a two time decrease in real values.
The highest level of increase in nominal expenditures for culture and art was seen in 2017. According to the data of the State Treasury of Ukraine, culture expenditures increased by 52% during January-July 2017, in comparison with this period in 2016. This index exceeded the Consolidated Budget dynamics (25.1 %) as well as other social sphere dynamics – education (41.5%) and health protection (35.9%).
In spite of the real increase in the Consolidated Budget expenditure for culture since 2016, it will be impossible in 2018 to reach even the 2014 culture expenditure level. The same situation occurs in education and health (although education will be closer to the pre-crisis level).
Table 14: Culture expenditure as a share of the GDP, Consolidated and State budget, 2011, 2012, 2013 and 2016
Year | Share (%) of cultural expenditure | ||
---|---|---|---|
GDP | Consolidated budget | State budget | |
2011 | 0.55 | 1.56 | 0.83 |
2012 | 0.57 | 1.62 | 0.75 |
2013 | 0.53 | 1.57 | 0.61 |
2016 | 0.34 | 1.22 | 0.37 |
Source: State Treasury of Ukraine, 2012, 2015, 2017, Development Centre “Democracy through Culture”, 2017.
The Ukrainian culture sector contributed at least 4.04% to national GDP. It was far less than the agriculture, forestry and fishing sector with 11.65%, but fully comparable with such sectors as mining and quarrying – 5.72%, financial and insurance activities – 5.11%, construction – 2.67%.
Projected expenditure for development (in 2018) will increase by 2.8 times (from UAH 187.6 million to UAH 522.7 million). Firstly, expenditure for development of the Ministry of Culture of Ukraine will reach a record 9,6% of the ministerial budget (compared with 2014 - only 2.17%). The highest expenditure for development will be through the following programmes, according to budget classification:
- 1801280 "Construction of cultural objects of national significance" - UAH 223 million (increasing by more than UAH 154 million compared with 2017);
- 1801170 "National activities in culture and arts, safeguarding of cultural heritage, export, import and return of cultural values, national linguistic policy, international relations, religion and protection of national minority rights" - UAH 203 million (increasing by more than 148 million);
- 1801030 "General and special education provided by art schools (artistic, music, choreographic), comprehensive secondary schools (boarding schools), out-of-school educational organisations; methodological supply of educational establishments" - UAH 48 million (increasing by more than 36 million).
Graph 3: Correlation between consumer expenditure and development expenditure in culture in 2012-2017
Source: Parliament Committee on Culture and Religions, 2017 (author: V. Babenko)
Last update: November, 2017
During 2014 – 2016, the share of local budgets in public culture expenditure constituted about 80%. At the same time, it is expected that the pre-crisis index (75%) will be back in 2017-2018. In 2016, the share of the local budget reached 80.9%.
Table 15: Public cultural expenditure in Ukraine: by level of government, in million UAH, 2014-2016 (executed)
Level of government | Total expenditure | % share of total | ||||
---|---|---|---|---|---|---|
2014 | 2015 | 2016 | 2014 | 2015 | 2016 | |
State | 1 539 | 1 804 | 2 012 | 18.1% | 20.7% | 19.1% |
Regional (oblast) | 2 978 | 2 066 | 2 664 | 35.1% | 23.8% | 25.2% |
Local (cities of republican, regional subordination) | 1 263 | 1 571 | 1 980 | 14.9% | 18.1% | 18.8% |
Local (districts/rayons) | 1 371 | 1 862 | 2 166 | 16.2% | 21.4% | 20.5% |
Local (cities of district’s subordination) | 74 | 72 | 89 | 0.9% | 0.8% | 0.8% |
Local (townships) | 148 | 155 | 156 | 1.7% | 1.8% | 1.5% |
Local (villages) | 1 106 | 1 162 | 1 225 | 13.1% | 13.4% | 11.6% |
Local (united territorial communities) | - | - | 259 | 0 | 0 | 2.5% |
Total/Consolidated | 8 483 | 8 694 | 10 554 | 100% | 100% | 100% |
Source: Ministry of Finance of Ukraine, 2017, Development Centre “Democracy through Culture”, 2017.
Last update: November, 2017
Table 13: State cultural expenditure: by sector, in million UAH, 2012
Field / Domain / Sub-domain | Direct expenditure |
Transfers (to other levels of government) | Total |
% of total State / local |
Special fund State / local | ||
---|---|---|---|---|---|---|---|
Cultural Goods | 313.3 | 397.2 | 710.5 | 15.4 | 6.6 | 28.6 | 12.8 |
Cultural Heritage | |||||||
Historical Monuments | 524.0 | 79 | 603 | 25.7 | 1.32 | 54.2 | 48 |
Archives | 98.2* | 0.0 | 98.2 | 0* | 0 | 13.4 | 2.6 |
Libraries, museums and exhibitions | 416.8 | 2 297 | 2 713.8 | 20.4 | 38.4 | 28.6 | 167.8 |
Arts | 149 | 499.5 | 648.5 | 7.3 | 8.4 | 1.8 | 91.3 |
Visual Arts (including design)** | 0.0 | 0.0 | 0 | 0 | 0.0 | 0.0 | |
Performing Arts | 677.7 | 982.7 | 1 660.4 | 27.6 | 20.4 | 0.0 | 51.2 |
Music, dance and circus | 313.3 | 397.2 | 710.5 | 15.3 | 6.6 | 0.0 | 22.3 |
Theatre and Musical Theatre | 486.7 | 791.9 | 1 278.6 | 23.9 | 13.2 | 0.0 | 93.1 |
Multidisciplinary | 11.4 | 0.4 | 11.8 | 0.55 | 0.0 | 0.0 | 0.0 |
Media*** | 1 387.1 | 217.1 | 1 604.2 | 173.7 | 2.4 | ||
Books and Press | 55.2 | 137.5 | 192.7 | 0.0 | 1.1 | ||
Books | 20.0 | 18.9 | 38.9 | 0.0 | 0.25 | ||
Press | 35.2 | 118.6 | 153.8 | 0.0 | 0.85 | ||
Audio, Audiovisual and Multimedia | 1 331.9 | 79.6 | 1 411.5 | *** | 135.3 | 12.8 | |
Cinema | 145.9 | 20.4 | 166.3 | 7.1 | 0.3 | 0.95 | 2.5 |
Television & Radio | 1 122.8 | 52.1 | 1 174.9 | *** | 121.3 | 3.2 | |
Other media | 63.2 | 7.1 | 70.3 | 5.0 | 0.1 | 0.0 | 6.1 |
Other | 183.4 | 1 896 | 2 079.4 | 9.0 | 31.7 | 4.1 | 286.5 |
Socio-cultural | 0.0 | 1 896 | 1 896.0 | 0.0 | 31.7 | 0.0 | 286.5 |
Cultural Relations Abroad | 128.1 | 234.0 | 362.1 | 6.3 | 3.9 | 0.0 | 142.1 |
Administration | 22.3 | 00.0 | 22.3 | 1.0 | 0.0 | 0.0 | 0.0 |
Educational Activities | 00.0 | 0.0**** | 00.0 | ||||
Not allocable by domain (Research) | 9.9 | 0.0 | 9.9 | 0.4 | 0.0 | 4.5 | 0.0 |
TOTAL | 2 120 | 5980 | 8 017 | 100% | 84 | 706 |
Source:
State Treasury of Ukraine.
Notes:
* Expenses for archives are in a separate budget item.
** There is no special budget item for visual arts; it is included in the item "Museums" as "exhibition activities". The Academy of Arts of Ukraine is funded separately.
*** Expenses for media are in a separate budget item.
**** Cultural or aesthetic education is in the competence of the Ministry of Education and Science of Ukraine. Since 2012, it is mostly a competence of the Ministry of Culture.
Last update: November, 2017
Support to artists includes direct financing and indirect assistance through e.g. low rents for premises, studios, workshops etc. Most regional and municipal councils have special funds to support creative activities through purchasing works of art or services. The lion's share of public funds is directed toward the maintenance of existing cultural institutions, including paying the salaries of their employees.
Last update: November, 2017
According to the Presidential Edict On State Scholarships for Outstanding Workers in Science, Education, Culture and Art, Health Care, Physical Culture and Sport, and Information (2011, with amendments 2013 and 2015), 97 persons related to cultural activities have received such support, including 10 lifelong scholarships and 87 received two-year support. As of 1 October 2016, the number of lifelong scholarship recipients, artists or cultural workers over 70 years old, constituted 298 persons. The amount of the scholarship is about UAH 1 800, that is, appr, 70 Euro.
Every year, the government sets aside a certain amount of the budget to purchase works of art (see also chapter 7.2.1).
Last update: November, 2017
The National Shevchenko Prize is the oldest annual award for writers, artists and artists groups for extraordinary achievements in different branches of culture. The Shevchenko Prize Committee receives applications from organisations and initiatives and declares its decision at the beginning of each year, before T. Shevchenko's anniversary on 9 March. Among other literature prizes there are: the Ukrainian Book of the Year, the state literature prize of the President of Ukraine established in 2009, Lesia Ukrainka Prize of the Cabinet of Ministers of Ukraine for books for children and youth, established in 1970 and revised in 2004, Koronatsiya Slova (Coronation of a Word), a non-governmental contest established in 1998 by the company Kraft Foods Ukraine, the BBC Book of the Year, a prize existing since 2005 and founded by the BBC, LitAkcent of the Year, a prize founded by the web-portal http://www.litakcent.com/, the Joseph Conrad-Korzeniowski prize established in 2007 by the Polish Institute in Ukraine, and the Antonovych award established in 1980 by the International Foundation of Omelian and Tetiana Antonovych (founded by renowned Ukrainian philanthropist Omelian Antonovych (1914-2008), prizes of publishing houses (for example the publishing house Smoloskyp), the National Writers' Union awards and others.
There are also awards for special branches of culture given by the Ministry of Culture and the artists' unions. Prizes are also awarded by banks, private foundations and individuals. The Ministry of Culture also grants the title of Honoured or Popular Artist of Ukraine to outstanding artists and cultural workers.
According the Presidential Edict On Scholarships of the President of Ukraine to Young Artisans (2011, with amendments 2016), 80 artists representing different traditional arts: pottery, ceramics, embroidery, wood-carving, weaving, painting, puppeteering, etc., received scholarships in 2017. The budget of the Ministry of Culture set aside a special item in the amount of UAH 1 341 000 (48 400 EUR) for this purpose.
Last update: November, 2017
According to the Law on Professional Artists and Artists' Unions, the government supports 11 national artists' unions, including the All-Ukrainian Society Prosvita, to help them "execute their legal tasks"; in 2016, UAH 6 183 000 or EUR 0.22 million was envisaged for this purpose. Artists' unions use government subsidies to provide their members with scholarships, financial assistance, support in the event of illness or death.
The government approved a Resolution (#535, as of May 17, 2012) which states that professional artists associations and their regional centres should pay for public services by tariffs established for the residents and not for enterprises.
Last update: November, 2017
In general, studies of private funding for culture do not exist in Ukraine. It is possible only to present some information about household spending for culture. Some special reviews concerning cultural financing analyse only general trends involving banks, trade networks, companies or foundations in funding artistic and cultural events, theatre performances, festivals, exhibitions and / or tours, without concrete statistics. At the same time, it should be important to mention some civic / private initiatives developing crowdfunding and social responsibility in Ukraine. One such initiative is the activity of the non-governmental organization Garage Gang developing venture philanthropy though the idea of crowdfunding or spilnokosht. Spilnokosht is the first and biggest online crowdfunding mechanism in Ukraine. It helps people find financial support for their projects among colleagues and supporters. Spilnokosht emerged out of the need to support creative, media and educational initiatives, and develops in order to fund innovations in such fields as IT, renewable energy and social entrepreneurship - http://www.gggg.org.ua/en/.