THE BUDGET FOR THE CAPITAL CITY CANNOT BE SUPPORTED
WITHOUT CLEAR CALCULATION OF THE TAXATION BASE AND PREVENTION OF THE KNOWN CORRUPTION RISKS
THE OPEN LETTER TO THE MEMBERS OF CITY COUNCIL
ON THE DRAFT BUDGET OF KYIV FOR 2015
According to the information available, as of January 27, 2015, the draft Kyiv budget for 2015 has not undergone major changes. The income of key budget lines was understated. The expert proposals were for the most part omitted when drafting the budget for the capital city.
The corruption risks cost the city budget billions of hryvnias, yet have never been addresses. The clear answers about the tax base calculation have not been received. The costs for the "General Plan for the City of Kyiv and Its Suburbs by 2025" (its development has taken more than 6 years already), the “Urban Cadastre of the City of Kyiv” and the zoning plans ‘for specific parts of Kyiv’ were unjustified and unreasonable.
Therefore, we urge the members of the City Council not to support the draft budget. Kyiv City State Administration has to publish the calculations on the tax base, and provide the answers to questions asked publicly by the Open Society Foundation, other NGOs and the members of the City Council on formation of BUDGET REVENUES AND EXPENDITURES.
Without precise calculations on the tax base, successful performance of key departments of KCSA and utility services providers, especially the Department of Architecture and Urban Planning and Land Resources Department, Kyiv budget for 2015, on the one hand, will include understated income tax rates for land resources, commercial real estate, mutual contributions of developers, the shares from advertising and the parking fee. On the other hand the budget will bear unjustified and unreasonable costs of the "General Plan for the City of Kyiv and Its Suburbs by 2025", "Urban Cadastre of the City of Kyiv" and zoning plans for ‘specific parts of Kyiv’.
The expert proposals and inquiries of the public experts and activists on draft capital city budget for 2015 are listed in the text of The Open Address to the Members of The City Council on the Draft Budget for 2015 in the attachment.
We urge the members of the city council not to support the draft Kyiv budget for 2015.
