oecd public sector accruals symposium - ronnie downes
DESCRIPTION
This presentation by Ronnie Downes was made at the 14th Annual OECD Public Sector Accruals Symposium, Paris 3-4 March 2014. Find out more at http://www.oecd.org/gov/budgeting/14thannualoecdpublicsectoraccrualssymposiumparis3-4march2014.htmTRANSCRIPT
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Openness, Transparency, Accountability: towards OECD Budget Principles
Ronnie Downes
Deputy Head - Budgeting & Public Expenditures Public Governance & Territorial Development, OECD
14th Annual OECD Public Sector Accruals Symposium
3-4 March, 2014
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• “Openness about policy intentions, formulation and implementation”
• Budget reports (7 in total) • Specific disclosures
– Non-financial assets – Contingent liabilities
• Integrity & accountability – Audit – Parliamentary scrutiny – Public availability on internet – Promote public understanding
OECD’s starting point
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Since 2002 …
• OECD Senior Budget Officials – Regional networks: MENA, LAC, CESEE, Asia; also CABRI – Thematic networks: Budget Accounting (Accruals);
Performance & Results; PPPs; Independent Fiscal Institutions; Health Budgeting
• Budget Reviews / Public Governance Reviews • Fiscal Network • Restoring Public Finances, 2011, 2012 • OECD Survey of Budget Practices & Procedures,
2007, 2012-13
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Developments & Priorities in budgeting
• from annual to medium-term budgeting • heightened focus on management of fiscal risks • Trend towards accrual accounting / budgeting • Budgeting across levels of government • from inputs to outputs, performance and impacts • from MoF to independent institutions • greater engagement of parliament and citizens • Wider international focus on budget transparency • budgeting as an instrument of public governance
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OECD Public Governance framework
Strategic public sector
HR
Managing complex
risks
Integrity & anti-
corruption
ICT & e-govt
Strategic centre of
government
Delivering government objectives
Quality of Regulation
Budgeting & PFM
Coordination across levels of
government
Public service
innovation
Citizen engagement
Open procurement
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What do we mean by “Transparency” now?
Of what? • Revenues • Expenditures • Processes • Plans • Performance • Risks
To whom? • Citizens • Parliament • Peers • Int’l bodies • Markets • Auditors
For what? • Participation • Trust • Lower costs • Integrity • Quality • Stability • Better decisions • Impacts
* Wehner & Rezio, IBP 2011
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Elements disclosed in the budget
0%10%20%30%40%50%60%70%80%90%
100%
Medium-termfiscal fiscal
policyobjectives
Budgetpriorities
Clearly definedappropriationsfor legislature
vote
Linkage ofappropriations
toadministrative
units
Medium-termperspective ontotal revenue& expenditure
Non- financialperformance
targets
Text oflegislation of
policiesproposed in
budget
2012 2007
7
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¾ publish the macroeconomic assumptions and methodology
0%10%20%30%40%50%60%70%80%90%
100%
2012 2007
Publicly available Not publicly available
8
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Time for legislative budget debate
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
No.of months budget presentedbefore start of FY
No.of months for legislativedebate
3 months or more Less than 3 months
9
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Fiscal rules
74%
76%
78%
80%
82%
84%
86%
88%
90%
92%
94%
96%
Percentage of OECD countries using fiscal rules
2012 2007
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Number of specialised legislative budget research units has increased
0
5
10
15
20
25
2012 2007
Specialised budget research office existsNo specialised budget research office exists
11
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More countries have established or are establishing independent fiscal institution
0
5
10
15
20
25
30
2007 2013
Fig. 8.13 Countries with independent fiscal institutions
No Yes
0
1
2
3
4
5
6
None >10 10 - 20 21 - 60 Morethan 100
Fig. 8.14 Independent fiscal institutions - number of staff
12
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draft Principles of Good Budgetary Governance
Quality, Integrity &
Independence
Performance, Evaluation &
VFM Participation Transparency
& Openness
True, full & fair budget
accounting
Fiscal objectives
Medium-term clarity
Strategic plans &
priorities
Performance, evaluation &
VFM
Transparency, openness & accessibility
Participation, Inclusiveness
& Realism
Fiscal Risks & Sustainability
Top-down budgeting
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Transparency, Openness & Accessibility
• Re-states Best Practices advice on budget reports – Enough time for effective discussion
• Beyond “openness” to “accessibility” – On-line – Open data formats – Analysed, re-used – role for CSOs / NGOs
• Open, standardised datasets covering all financial inflows and outflows – Open government – Integrity – Programme evaluation
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Inclusive, participative and realistic
• Beyond openness to understand, influence and input – According to democratic mandate and prerogatives
• “Citizen’s budget” – standard and user-friendly • Parliament – engage with budget process…
– … at all stages of budgetary cycle? – … ex ante as well as ex post?
• Realistic engagement about difficult policy choices – Trade-offs, opportunity costs and VFM – Greater clarity from government about evaluations, CBA
studies?
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True, full & fair picture of the public finances
• Nothing should be omitted or hidden “off-budget” – “budget sincerity” rules or declarations
• Full national overview – including sub-national dimension
• “Full financial costs and benefits” of budget decisions – Impact upon financial assets and liabilities – Accruals budgeting and reporting – Cash accounting needs supplementary information
• Q: Is this ambitious enough? - useful enough?