open budgeting - escap
TRANSCRIPT
Open Budgeting:
Principles, Practices and
the Open Budget Survey
April 2019
Introduction: Open Budgeting
Budget transparency, participation and oversight play a
role in:
• promoting fiscal discipline
• increasing access to credit and lowering borrowing
costs
• identifying how to use public funds more effectively
• curbing corruption to help economies thrive
www.InternationalBudget.org 2
Three Pillars of Open Budgeting
www.InternationalBudget.org 3
Transparency
Oversight
Participation
Three Pillars of Open Budgeting
www.InternationalBudget.org 4
• IMF Fiscal
Transparency Code
• OECD
Recommendation on
Budgetary
Governance
• IBP Open Budget
Survey
• PEFA
• TADAT
• World Bank – IMF
Guidelines for Public
Debt Management
Transparency
Oversight
Participation
Three Pillars of Open Budgeting
www.InternationalBudget.org 5
• GIFT Principles of
Public Participation
• Open Budget Survey
(Section 5)
• IMF FT Code (2.3.3)
• PEFA (PI 18.2, PI
24.4) and
Supplementary
Module on Public
Participation
• TADAT PI 3-9 and PI
9-27
Transparency
Oversight
Participation
Three Pillars of Open Budgeting
www.InternationalBudget.org 6
Transparency
Oversight
Participation
• INTOSAI
International
Standards
• Inter-Parliamentary
Union Universal
Declaration
• Open Budget Survey
(Section 4)
• OCED
Recommendation on
Principles for
Independent Fiscal
Institutions
Three Pillars of Open Budgeting
www.InternationalBudget.org 7
Transparency
Oversight
ParticipationAccountability:
Transformation of
public finance and
tangible improvements
to people’s lives
Open Budgeting and the SDGs
• Tracking Spending Commitments on SDG
Priorities: Information on how governments raise and
spend public funds, and the results achieved, is central
to attaining the SDGs
• Assessing the Credibility of Spending
Commitments: Open budgeting is also central to
allowing citizens to hold their governments to account
for commitments made in budgets on spending related
to the SDGs (recognized by SDG indicator 16.6.1)
www.InternationalBudget.org 8
Open Budgeting and Inequality
• Philippines: Proposed National Budget includes a
detailed outline of how the government will prioritize
expenditure so as to contribute to poverty reduction
• Fiji: Chapter in the budget proposal with details of
programs targeting women, children, and people with
disabilities.
• Pakistan: Federal Medium-Term Estimates for Service
Delivery sets out several programs aimed at poverty
alleviation, a discussion of policy priorities, expected
outputs and budget figures for past spending and
future allocations and projections.
www.InternationalBudget.org 9
Open Budgeting and Tax Morale
“Citizens are more likely to comply with local tax
regulations when governments are more
transparent, when citizens exercise voice in the
policy process, and when governments deliver
better public services.”
– World Bank: Of Governance and Revenue Participatory
Institutions and Tax Compliance in Brazil (March 2019)
www.InternationalBudget.org 10
The Open Budget Survey
www.InternationalBudget.org 11
• 18 revised questions
examine formal
oversight institutions
• 109 indicators used to
construct the Open
Budget Index assess
whether governments
publish online and in a
timely manner eight
key budget documents
• 18 new questions
examine opportunities
for public participation
in national budget
decision-making and
oversight
OBS Research Process
www.InternationalBudget.org 12
The Open Budget Index (OBI) 2017
www.InternationalBudget.org 13
• The average OBI score of the 115 countries surveyed in 2017 is 42 out of
100, suggesting that the global state of transparency is limited
Open Budget Index 2017: Asia Pacific
40 42
0
20
40
60
Asia & Pacific Global Average
18 countries 115 countries
• Top global performers
• New Zealand (89)
• South Africa (89)
• Sweden (87)
• Norway (85)
• Georgia (82)
• Top Asia & Pacific
performers:
• Philippines (67)
• Indonesia (64)
• Kyrgyzstan (55)
• Kazakhstan (53)
• Nepal (52)
Only 61% of documents are published
www.InternationalBudget.org 15
About 65% of documents in Asia and
Pacific countries are published
www.InternationalBudget.org 16
Percentage of documents published
Of Asia-Pacific country documents
that are published, key details missing
www.InternationalBudget.org 17
Open Budget Index score of published documents
Global increases in transparency halted
www.InternationalBudget.org 18
• The average OBI score fell from 45 in 2015 to 43 in 2017
for the 102 countries surveyed in both rounds
Lower global OBI score reflects decline in
document publication
• Net number of documents published declined by 37
– First time survey found a drop in document publication
• Asia and Pacific countries did not contribute to this decline;
they published the same number of documents in 2017 as
2015
– But some volatility: 17 documents stopped being published,
while 17 documents started being published
• Regularly publishing key budget documents is one tangible
way that governments can improve their transparency
practices
www.InternationalBudget.org 19
Changes in OBI scores: Asia & Pacific
• Eight countries
increased by more
than five - 2015 to
2017
• Nepal (+28)
• Fiji (+25)
• Cambodia (+13)
• Three countries
decreased by more
than five - 2015 to
2017
• Bangladesh (-15)
• Papua New
Guinea (-6)
• Mongolia (-6)
36
43
36
46
40
44
0
20
40
60
Asia & Pacific Global Average
2012 2015 2017
18 countries 18 countries
Scores on participation are low
• Not a single country out of the 115 surveyed offers
participation opportunities that are considered adequate (a
score of 61 or higher)
• The average global score is just 12 out of 100
• Only 4 countries have scores that indicate limited
opportunities for public participation: Australia, New
Zealand, the Philippines, and the United Kingdom
www.InternationalBudget.org 21
Participation: Asia and Pacific
12
13
0 10 20 30 40
Global Average
Asia & Pacific
Legislative oversight is limited
• Legislatures exercise more oversight earlier in the budget
process than during implementation
• Legislatures amend the budget in over half of the countries
surveyed…
• In more than one-third of countries, legislatures do not
examine any Audit Reports produced by Supreme Audit
Institutions
www.InternationalBudget.org 23
Legislative oversight
www.InternationalBudget.org 24
• Average score for Asia and
Pacific countries is 48,
equal to the global average
• Generally, legislative
oversight is stronger during
formulation than during
execution phase
7
9
7
0
1
2
3
4
5
6
7
8
9
10
0-40 41-60 61-100
Asia-Pacific Countries grouped by 2017
Legislative Oversight Score
Weak Limited Adequate
Supreme Audit Institution oversight
www.InternationalBudget.org 25
• Average score for Asia and
pacific countries is 65, just
above global average of 63
• 16 countries have
conditions for SAI to
perform adequate oversight
• 9 countries score over 70,
including 5 that score
over 80
34
16
0
2
4
6
8
10
12
14
16
18
0-40 41-60 61-100
Asia-Pacific Countries grouped by 2017
SAI Oversight Score
Weak Limited Adequate
www.InternationalBudget.org 26
Thank You
Contact Information:
International Budget Partnership
Sally Torbert, Program Officer for Asia
www.InternationalBudget.org 27