OPEN LETTER

We, the representatives of the Open Society Foundation, who have been exploring the budget of Kyiv for four consecutive years and have been providing expert consulting and support to civil society organizations in the field of monitoring local budgets, representing Ukraine in the international organizations working on budget transparency (including the Global Movement for Budget Transparency, Accountability and Participation), on the occasion of the International Right to Know Day (September 28, 2013),

Being conscious of importance of the integration of Ukraine into the European Community, being deeply concerned about the budget process in Kyiv and other cities of Ukraine, recognizing the importance of enhancing the effectiveness of fiscal policy and the real cost of losses from improper execution of the requirements of the Budget Code of Ukraine, exercising the right to participate in the development and in the public control of the development and implementation of fiscal policy in the country, realizing the need for cooperation between the authorities and the public in the formulation and implementation of fiscal policy, as well as on the occasion of presenting the analytical report “Kyiv Budget 2012 : Challenges and Opportunities for Future Fiscal Policy" and on the start of the 2014 budget process

appeal to

President of Ukraine Viktor Yanukovych,

Chairman of the Cabinet of Ministers of Ukraine Mykola Azarov,

Chairman of the Verkhovna Rada of Ukraine Volodymyr Rybak,

Leaders of factions in the Verkhovna Rada of Ukraine, political parties,

Deputies of the Verkhovna Rada of Ukraine

The results of fiscal policy at the level of the state budget of Ukraine, the Kyiv city budget and other local budgets allow us to assert the need to:

• conduct open public budget hearings on the state 2014 budget of Ukraine;

• amend the Budget Code of Ukraine regarding increasing responsibility for non-fulfillment of budgets, as well as insufficient funding for items that are defined by the legislation of Ukraine as a priority;

• amend Article 29 and Article 65 of the Budget Code of Ukraine, which would enable paying 100 percent of the personal income tax, paid (transferred) in Kyiv, to the budget of Kyiv and increase the responsibility of the Kyiv mayor to the community;

• increase state control over the budget spending by the administrators of budget funds;

• publish reports on the implementation of all state target programs;

• introduce a mechanism of public consultation between developers of budgets by state and local authorities, on the one hand, and independent think tanks and civil society organizations, on the other hand, during the preparation of the draft 2014 budget;

• amend Art. 7 of the Budget Code of Ukraine, which would make it possible to restore the principle of responsibility in the budgetary system of Ukraine;

• amend the Budget Code of Ukraine regarding an introduction of the mandatory preparation of the budget for citizens and increasing the levels of detail and visualization of budget information in annual and semi-annual reports on budget execution on the official websites of executive power;

• provide the Accounting Chamber of Ukraine the right to audit the execution of local budgets.

appeal to

the Chairman of the Council of Ministers of the Crimea,

the Heads of the regional and district state administrations,

the Heads of Kyiv and Sevastopol city state administrations, political parties,

Deputies of the local councils

• conduct open public budget hearings on local 2014 budgets;
• make an assessment and inventory of the land resources and property of local communities particularly in terms of enterprises of city and district subordination indicating the volume of benefits;
• disclose techniques and calculation of cost of tariffs (including housing,  utilities, fare, etc.) for state and municipal enterprises;
• publish detailed information on the debt of local communities and take action to reduce  the share of the

debt burden on the budget;

• publish reports on the implementation of all local target programs.

The Open Society Foundation PUBLICLY refers to the deputies of councils of all levels, political parties, civil society orgnizations, media and private persons to support the appeal by sending the message "Support  the Appeal" to the email address: osf55@ukr.net

Support of the appeal is evidence of real commitment to implement effective and coherent fiscal policy and willingness to contribute to conducting budget hearings for 2014 budget.

The public finances of Ukraine should be open and transparent!

Open letter is prepared by the Open Society Foundation

www.osf.org.ua, www.deputat.org.ua, email: osf55@ukr.net,

6, Brats’ka St, Suite 402, Kyiv 04070 UKRAINE