Baltic Journal of Economic Studies

Vol. 4, No. 4, 2018

Corresponding author:
1 Supreme Court of Ukraine, Ukraine.
E-mail: bernaziuk1979@gmail.com
2 Supreme Court of Ukraine, Ukraine.
E-mail: nv417170@gmail.com

DOI: https://doi.org/10.30525/2256-0742/2018-4-4-39-44

LEGAL REGULATION OF THE FINANCIAL SUPPLY
OF THE CONSTITUTIONAL COURT OF UKRAINE

Ian Bernaziuk1, Nataliia Kovalenko2

Abstract. The aim of the article is to study the history and modernity, the doctrine and practice of legal regulation of
financial support of the Constitutional Court of Ukraine. The subject of the study is the legal regulation of the financial
support of the Constitutional Court of Ukraine. Methodology. Scientific research is based on the use of philosophical,
general scientific and special scientific methods and techniques of scientific knowledge. The dialectical method
allowed considering the legal regulation of the financial support of the functioning of the Constitutional Court of
Ukraine in development and interaction with other social and legal phenomena. The historical method is aimed
at reconstructing the genesis of legal regulation of the financial support of the Constitutional Court of Ukraine
at various stages of its formation. The formal legal method enabled to characterize the specificities of the legal
regulation of financial support of the Constitutional Court of Ukraine by legal constructions and legal terminology.
Comparative legal method contributed to the study of the specifics of the legal regulation of financial guarantees of
the independence of constitutional justice bodies in certain countries of the world. The results of the study revealed
that the characteristic feature of socio-political transformations in modern Ukrainian society is ongoing reformation
of constitutional justice, one task of which is to strengthen the financial independence of the CCU as potentially
the most effective institution for the protection of human and civil rights and freedoms, establishment of legal,
constitutional Ukraine. Practical implications. In the study, firstly, the views of experts on the legal regulation and
practice of financing the Constitutional Court of Ukraine as a body of constitutional jurisdiction were considered;
secondly, the specificities of legal regulation of financing of the Constitutional Court of Ukraine before the reform of
constitutional justice in 2016–2017 were studied; thirdly, the current state and prospects of improving the financial
support of the Constitutional Court of Ukraine were analysed. Relevance/originality. On the basis of a comprehensive
study of the constitutional doctrine, domestic and foreign legislation and practice of its implementation, directions
of strengthening the financial independence of the Constitutional Court of Ukraine are proposed.

Key words: constitutional justice, Constitutional Court of Ukraine, reform of constitutional justice, independence of
Constitutional Court of Ukraine, financial support of Constitutional Court of Ukraine.

JEL Classification: K3, K13

1. Introduction
Modern efforts on the transformation of Ukraine into

a legal democratic European state are impossible without
establishing the supremacy of the current Constitution
of Ukraine. Therefore, it is logical that the issue of proper
legal protection of the Basic Law is extremely relevant,
interesting, though difficult. Indeed, the problem of
legal protection of the Constitution, which arose almost
immediately after the formation of original ideas of
constitutionalism and first constitutional acts, continues
to be one of the main objects of scientific discussion
in the modern theory and practice of constitutional
law (Fedorenko, 2015). According to the principles
of a democratic, legal, social state, the constitutional
justice of the Constitutional Court of Ukraine serves as

the guarantor of their consistent implementation and
formation of real democracy. The competence of the
Constitutional Court of Ukraine (hereinafter, the CCU,
the Court) enables to confirm the significant potential
for a direct effect of the Constitution of Ukraine. It is an
arbitrator between the branches of power, ensuring the
stability and proper functioning of public authorities
and local self-government bodies, guaranteeing
constitutionality for legal act adoption. At present, the
CCU is a body of constitutional jurisdiction, which
significantly influences the national legal system of
Ukraine and occupies an important place among the
jurisdictional institutions because it determines the
condition and dynamics of protecting human and civil
rights and freedoms (Kuzmenko, 2012).

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2. The aim of the article
One of the main reasons for the weakening of the

CCU authority over the last decade is the lack of
guarantees of the independence of its activities, in
particular, financial ones. Therefore, the study of the
history and modernity, the doctrine and practice of legal
regulation of the financial support of the CCU acquire
a special relevance, which is the aim of this scientific
article. For its successful implementation, the following
tasks should be solved: first, to consider the views of
specialists on legal regulation and practice of financing
the CCU as a body of constitutional jurisdiction;
second, to analyse the legal regulation of financing of
the Constitutional Court of Ukraine before the reform
of the constitutional justice in 2016-2017; third, to
study the current state and prospects for improving the
financial support of the CCU.

Literature review. It should be noted that some aspects
of financial (budget) provision of the CCU functioning
were interpreted in the works of M. I. Koziubra,
P. F. Martynenko, M. D. Savenko, M. V. Savchyn,
M. F. Selivon, V. E. Skomorokha, I. D. Slidenko,
V. M. Shapoval, S. V. Shevchuk.

3. The main material
Thus, effective performance of the CCU’s tasks

and functions determined in accordance with the
current domestic legislation is possible only on
condition of sufficient financial support of this body,
which is a guarantee of its independent functioning.
The independence of the CCU in exercising its
authorities is provided by various guarantees, that is, a set
of specific conditions, means, and methods. Material
and financial independence and autonomy of the CCU
are the basis for the realization of its independence as
a whole (Chupryna, 2006).

According to V.Ye. Skomorokha, the most important
element of the CCU independence is proper conditions
for its activities and functioning. This is provided by the
financing of the Constitutional Court, remuneration
of judges, their pensions, etc. The Constitution of
Ukraine charged the state to finance, establish proper
conditions for the Constitutional Court and judges’
performance providing for the expenditures for the
maintenance of this institution in the State Budget of
Ukraine (Article 130 of the Constitution of Ukraine),
not having determined a clear mechanism for this norm
implementation (Skomorokha). The experience of
the Parliament of Ukraine gives evidence on the use
of the “wallet rights” to influence the independence of
the Court. In particular, by adopting the State Budget
of Ukraine for 1998, the Verkhovna Rada of Ukraine,
“without a vote”, without any preliminary discussion
and available reasons, contrary to the recommendations
of the Government and the Budget Committee, without
consulting the leadership of the CCU, reduced the state

expenditures for the maintenance of the Court almost
by 40%. Nothing of this kind has taken place in relation
to any other authority (Skomorokha, 2006). The Law of
Ukraine “On the Constitutional Court of Ukraine” as of
October 16, 1996, does not contain such a mechanism
as well, besides Article 31 provides for that the proposals
regarding the financing of the Constitutional Court
and the draft of the corresponding estimations should
be submitted by the Head of the Court to the Cabinet
of Ministers of Ukraine and the Verkhovna Rada of
Ukraine when drafting the State Budget of Ukraine. The
proposals are not obligatory for the bodies, to which they
are submitted and, therefore, they determine financing
at their discretion that affects the independence of the
CCU and its judges. According to V. Ye. Skomorokha,
in the Law of Ukraine “On the Constitutional Court
of Ukraine”, it is necessary to determine the specific
percentage of national gross profits allocated to the
financing of the Court, and mandatory consideration of
the draft estimations proposed by the Head of the CCU
for the government and parliament. The total financing
proposed by the CCU can be reduced only in cases of
limiting the financing of all the highest bodies of state
power. Reducing financing should be adequate, that is,
for a clearly defined and equal percentage for all. The
draft estimations should be made in presence of judges
and they should monitor its implementation, which will
limit the internal impact on judges by providing them
with a bonus, material assistance or allocation of funds
for welfare needs. Approval of the draft budget for each
year and hearing of the quarterly information of the Head
of the CCU on the use of budgetary funds at the Court is
provided for in paragraph 8 of the CCU Rules. However,
in practice, these provisions are not performed by the
CSU (Skomorokha). The total remuneration of the
Head of the CCU cannot exceed the total remuneration
of judges by more than 10%. A greater difference in
wages diminishes the importance of the judge’s judicial
power in constitutional proceedings (Skomorokha).

The practice of financing the Constitutional Court
of Italy shows that one of the conditions for its
independence is financial independence. Any restriction
of this independence is recognized by the court as
unconstitutional. First and foremost, this independence
is manifested in the self-determination of financial
needs. In case of necessity to reduce the amounts
provided for the functioning of constitutional bodies,
representatives of all political forces make decisions
to charge the government, together with the heads of
constitutional bodies, under the general agreement
and considering the existing financial difficulties, to
determine the reduction of expenses in the budget of
the constitutional body (Skomorokha, 2016).

In other scholarly works, on the basis of
considering guarantees of independence of the CCU,
V. Ye. Skomorokha concludes that the budget financing
of the Court should include the following points:

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Vol. 4, No. 4, 2018
1. In order to ensure the budget autonomy and

financial management of the Constitutional Court, the
estimation of its expenditures should guarantee the
possibility of independent constitutional justice and
cannot be reduced compared to the previous fiscal year.

2. If the Cabinet of Ministers of Ukraine considers it
necessary to reduce the total expenses of the CCU, then
proportionally (in percentage terms) the total funding
of other branches of power should be decreased.
The discussion should involve the Head of the Court.
In case of disagreement, the proposals of the Head
of the CCU are included in the draft budget with the
conclusion of the Cabinet of Ministers of Ukraine.

3. The funding level for the next year should be
discussed in the parliament with the participation of the
Head of the CCU or his deputy.

4. Costs of maintenance of the CCU may be attributed
to protected items of the budget.

5. Management of budget funds for the support and
maintenance of the CCU functioning in accordance
with the estimation approved by the Court shall be
exercised by the Head of the CCU without the influence
of other branches of power.

Therefore, observance of the principle of financial
independence of the Constitutional Court depends on
the economic capabilities of the state, the level of legal
culture of senior officials, and a number of other factors
of objective and subjective character (Skomorokha,
2016).

According to M.V. Savchyn, the basis of financial
and material support for the independence of the
court is the implementation of the pro rata principle
in financing the maintenance of judicial institutions,
which enables fair allocation of expenditures for
their maintenance, necessary for ensuring the right
of defence (consequently, process of law), the rights
of the person to judicial protection. In its disposition
of the case on financing of the courts, the CCU stated
that the restriction of expenditures for the financing of
the judiciary does not guarantee the proper conditions
for the full and independent implementation of justice
and the functioning of courts and undermines the trust
of citizens in state power, endangers the consolidation
and protection of fundamental human and civil rights
and freedoms. In case of a deficit of the State Budget of
Ukraine, the reduction of expenditures for the financing
of courts should be conducted on the pro rata principle,
with the consent of the CCU and the Supreme Court
of Ukraine (Savchyn, 2003). In addition, M. V. Savchyn
suggests that the Rules of the CCU should reflect the
provisions of the Law of Ukraine “On the Constitutional
Court of Ukraine” as of October 16, 1996, regarding
the proposals on the total financing of the Court when
drafting the State Budget of Ukraine (Article 31).
The CCU has already expressed its position on the issue
of financing of courts but these issues should be regulated
clearly in the Rules of Court to increase the guarantees

of independence of the body of constitutional justice
(Savchyn, 2003).

M.F. Selivon notes that the Secretariat drafts
estimations for the CCU for the next year. It is examined
in the Permanent Committee of the Court on Budget and
Personnel and approved by the CCU (Clause 1, Section
7, Chapter 2 of the Rules of the CCU). Subsequently,
the Head of the CCU transmits this document to the
Cabinet of Ministers of Ukraine and the Verkhovna
Rada of Ukraine. The analysis of the procedure and
justification of the draft budget for financing the CCU
in the Ministry of Finance of Ukraine, the Cabinet of
Ministers of Ukraine, committees of the Verkhovna
Rada of Ukraine, as well as the approval of the budget
at the plenary session of the Parliament, reveals that
provided for in the legislation guarantees of financial
independence of the Court at these stages of the budget
procedure are insufficient. While the above-mentioned
bodies discuss the budget of the CCU, in essence,
decisions taken do not consider the special status of the
latter and the procedure is the same as for other state
bodies and budgetary institutions (Selivon, 1998).

The analysis of the previous version of the Law of
Ukraine “On the Constitutional Court of Ukraine” on
October 16, 1996, from retrospective, suggests that
financing of the CCU has been a separate line in the
State Budget of Ukraine. Proposals on the total financing
of the CCU and the draft budget were submitted by the
Head of the Court to the Cabinet of Ministers of Ukraine
and the Verkhovna Rada of Ukraine when drafting
the State Budget of Ukraine for each subsequent year
(Pro Konstytutsiynyi Sud Ukrainy Zakon Ukrainy). In
a popular commentary to the above Article 31 of the Law
of Ukraine “On the Constitutional Court of Ukraine” as
of October 16, 1996, S. L. Lysenkov notes that after the
approval of the Verkhovna Rada of Ukraine, the State
Budget becomes a law. The total funds allocated to
finance the activities of the CCU are as a separate line
in it and gain the power of the law, and therefore, cannot
be changed by any government bodies or officials
(Lysenkov, 1998). The Head of the CCU leads and
organizes its performance and better than anyone else
knows its needs. That is why the law empowers him to
submit proposals to the Cabinet of Ministers of Ukraine
and the Verkhovna Rada of Ukraine regarding the total
financing of the CCU together with the draft of the
corresponding estimations (Lysenkov, 1998).

The scientific and practical comments of the Law
of Ukraine “On the Constitutional Court of Ukraine”
on October 16, 1996, under the general editorship of
A. A. Stryzhak state that according to Part 1 of Article
31 of this Law, the financing of the CCU in a separate
line in the State Budget is one of the guarantees of
independence of the single constitutional jurisdiction
body. According to the Decision of the Constitutional
Court of Ukraine no. 6-rp as of June 24, 1999 (a case
on financing of courts), the centralized procedure for

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Vol. 4, No. 4, 2018
financing of the judiciary from the State Budget of
Ukraine to ensure the proper economic conditions for
full and independent implementation of justice,
financing of court needs (expenses for consideration
of court cases, utilities, repair and security of court
premises, purchase of office equipment, postal expenses,
etc.) should limit any influence on the court and is
aimed at guaranteeing judicial activity consistent with
the principles and requirements of the Constitution
(Stryzhak, 2009). According to subparagraph 3, clause
1, Section 2 of the Rules, the Head of the CCU submits
for the approval of the Court draft estimates for each
subsequent year. At its meetings, the CCU considers
proposals regarding the total financing of the Court,
approves the draft estimates for each fiscal year; hears
the information of the Head of the CCU on the use
of budget allocations (Subparagraphs 7, 9, Clause 1,
Section 7) (Stryzhak, 2009).

The reform of the domestic constitutional justice
in 2016–2017 included the introduction of changes
to financial ability and independence of the CCU.
According to Article 1481 of the Constitution of
Ukraine on June 28, 1996, the state provides the
CCU with financing and appropriate conditions for
the activity. The State Budget of Ukraine determines
separately the expenses for the activity of the Court
considering the proposals of its Head. The size of the
remuneration of the CCU judge is provided for by the
law on the CCU (Konstytutsiia Ukrainy), and not by
government decrees as before (Kyrychenko, June 2017).
Furthermore, Article 48 “Guarantees of the financial
independence of the Court” of the Law of Ukraine “On
the Constitutional Court of Ukraine” as of July 13, 2017,
stipulates that expenditures on the financial support of
the Court’s activity are determined by a separate line in
the State Budget of Ukraine. Expenditures for financial
support of the Court’s activities cannot be reduced
in the current budget period. The total expenses for
financing the Court’s activities in the next year may not
be lower than the expenditures in the preceding fiscal
year. The Court, in accordance with the Budget Code of
Ukraine, functions as the main spending unit of the State
Budget of Ukraine regarding the financial provision
of its activities (Pro Konstytutsiynyi Sud Ukrainy).
It is important to ensure the tradition of effective
application and practical implementation of these
regulations in the activities of the Verkhovna Rada of
Ukraine and the Cabinet of Ministers of Ukraine.

Thus, according to the annual information report of the
CCU for 2017, the Law of Ukraine “On the State Budget
of Ukraine for 2017” as of December 21, 2016, the court
has been designated as the main spending unit under
the budget program 0801010 “Ensuring Constitutional
Jurisdiction in Ukraine”. The strategic objective of
the Court as the main spending unit is to ensure
compliance and implementation of the constitutional
regulations, human and civil rights and freedoms,

the principles of the social and state system in Ukraine,
person’s access to constitutional control. The total
expenditures of the CCU as the main spending unit in
2017 amounted to 148 485.1 thousand UAH, including:
current expenditures up to 131 070.0 thousand UAH,
capital expenditures up to 17 415.1 thousand UAH.
Unlike previous years, in 2017, the CCU received the
necessary capital resources to upgrade the material
and technical base to create the prerequisites for
the effective implementation of the new strategic
task, that is, to increase access of citizens and other
persons to the constitutional justice and to implement
powers of constitutional complaints handling. Due to
development expenditures, in 2017, the capital repairs
of some premises of the administrative building of
the CCU with the functional complex arrangement
(meeting room, consultation room, and hardware
technical office) were carried out to ensure one of the
Court Senate functioning, and three halls of meetings
of the Chamber of the CCU were also arranged.
An important trend in using financial resources in
2017 is the comprehensive modernization and updating
of the information and communication systems of the
CCU. An important step towards the implementation of
the principles of transparency and openness of the CCU
was the introduction, on a new technical basis, of an
online broadcast of open parts of the plenary sessions of
the Court for citizens of Ukraine and other individuals
to obtain information on the work of the CCU directly.

In view of the strategic objective, some unsolved
issues in 2017 on the financial support of constitutional
proceedings should be also noted. In particular, the
issue of cost planning on the involvement of experts,
specialists and translators is problematic due to the
lack of appropriate legal regulation. In addition, the
mechanism of compensation of expenses incurred by
witnesses involved in the constitutional proceeding
remains unresolved. In accordance with the Law of
Ukraine “On the Constitutional Court of Ukraine” as of
July 13, 2017, the Archive and Library of the CCU are
created and function. These institutions should become
public and accessible centres for professionals, scholars,
and all interested persons. However, the conditions
for ensuring such publicity in the CCU have not been
created. There are neither premises of the relevant
technical standard, nor sufficient financing aimed at
developing a library fund and improving the special
technical conditions for storing cases of constitutional
proceedings up to 100 years. To solve these problems,
the provided plan for the CCU functioning should be
implemented, that is, the three buildings of the Court
should operate, of which only two are currently under
construction (Shchorichna informatsiyna dopovid
Konstytutsiynoho Sudu Ukrainy za 2017 rik).

It should be noted that the regulation of Article 48 of
the Law of Ukraine “On the Constitutional Court of
Ukraine” on July 13, 2017, according to which the

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Vol. 4, No. 4, 2018
total financing of the activities of the CCU for the next
year cannot be less than the total expenditures in the
previous fiscal year, is not fully consistent with one of
the main principles of the budget the system of Ukraine,
that is, the principle of justification. Therefore, failure to
comply with this provision may cause the unproductive
use of funds, excessive overstatement of needs. For
that reason, the current legislation regulates issues of
organizational support for the activities of the CCU,
while certain provisions of the legislation in determining
the total financing of the activities of the Court need to
be improved (Zvit pro rezultaty finansovoho audytu
Konstytutsiynoho Sudu Ukrainy).

4. Conclusions
Therefore, the analysis conducted enables to assert

that the characteristic feature of socio-political
transformations in modern Ukrainian society is
ongoing reformation of constitutional justice, one task
of which is to strengthen the financial independence of
the CCU as potentially the most effective institution for
the protection of human and civil rights and freedoms,
establishment of legal, constitutional Ukraine.
Ultimately, all reforms must serve the main public
interest, that is, the wellness of a person who should
live in conditions of guaranteed rights and freedoms,

a high level of culture, science and education, material
security, peace and safety (Kryvytskyi, 2018). With the
enactment of the Law of Ukraine “On Amendments to
the Constitution of Ukraine (on Justice)” as of June 2,
2016, and according to the recommendations of the
European Commission for Democracy through Law
(the Venice Commission), the CCU acquired the status
of an independent institution that is different from the
courts of general jurisdiction. Consequently, the status
of a judge of the CCU, the procedure for selecting
candidates for this post have been changed, as well as
an exhaustive list of grounds for dismissal of the judge
of the Court has been provided for and the jurisdiction
of the CCU to terminate the powers of the judge of
the Court has been extended. In addition, the Basic
Law of Ukraine contains the CCU regulations aimed
at strengthening the independence, which guarantee
the financing of the Court and appropriate conditions
for its activities. The current legislation regulates the
issue of financial independence of the CCU. Moreover,
the practical application of the Article 48 of the Law
of Ukraine “On the Constitutional Court of Ukraine”
on July 13, 2017, regarding the determination of
expenditures not less than the expenditures in the
previous fiscal year, needs to be reconciled with one of
the basic principles of the budgetary system of Ukraine,
the principle of justification.

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