The Draft of the 2014 National Budget of Ukraine is Down by Law?
In the process of drafting the 2014 budget of Ukraine, the government has once again ignored the current budget. rules.
The principles of fiscal policy, which are incorporated in the Budget Code of Ukraine and the Strategy of Development of Public Finance Management System, were neglected in the interest of political expediency.
The Open Society Foundation expresses its concerns over systemic and conscious disregard the current budget legislation and basic principles of the budgetary system of Ukraine in the formation and consideration of the draft 2014 Budget of Ukraine by the Government ofUkraine.
Does the Government of Ukraine have the right to demand fulfillment of tax obligations by taxpayers in a situation where it regularlyviolates legislated requirements for budget process and mimics taking into account the public opinion? Violation by the government of thecurrent budget legislation calls into question the legitimacy of the national 2014 budget.
Item 10 of Article 7 of the Budget Code of Ukraine (BCU) requires public awareness on drafting, review, approval, and execution of the national budget and local budgets, as well as control over the national budget and local budgets. The above is provided by publishing documents related to drawing up the budget, its approval and implementation. The draft of the national 2014 budget of Ukraine was received by the Verkhovna Rada of Ukraine just on December 18, 2013, that is more than three months later than required (the draft of the 2014 budget. submitted on September 15, 2013 and immediately withdrawn by the government, was not published in the newspaper "Uriadovyi Courier" (The Governmental Courier) within seven days after submission to the Parliament of Ukraine in breach of the second paragraph of BCU’s Article 27) , which is a violation of Article 96 of the Constitution of Ukraine, Article 155 of the Rules of Parliament, Article 37 of the BCU. By December 18, 2013 there was no public information on the 2014 budget indicators and their correspondence to the priorities of social and economic development.
Also, the fiscal policy of the Cabinet of Ministers of Ukraine violates the requirements of Title XII of the Strategy of Public Finance Management System approved by the Order of the Cabinet of Ministers of Ukraine as of August 1, 2013 № 774-p[1], which is formulated as"public availability of information" and has designed to ensure public control over the effective and efficient management of public funds.Moreover, the current government practice of preparation and adoption of the budget:
- does not facilitate the establishment of atmosphere of public trust and strengthening communications between authorities, citizens and civil society organizations,
- contradicts fundamental principles of the IMF Code of Good Practices on Fiscal Transparency (including the principles of "open budget processes" and "public availability of information"), which were included in the newly approved Strategy of Public Finance Management .System.
Actually, the government does not fulfill its own regulations.
The Open Society Foundation:
1) insists on respect for the principles of budgetary system of Ukraine, sealed in the Budget Code of Ukraine, namely transparency and openness, fairness and impartiality, targeted use of budget funds;
2) notes that urgent disclosure of complete information on the draft of the 2014 budget is needed;
3) considers it necessary to hold real public hearings on proposed 2014 budget, particularly as to the pro-government supporters as well as to the supporters of European integration;
4) demands the adoption of the 2014 budget under a full parliamentary procedure in three readings.
