budget transparency by katharina zuegel - oecd
DESCRIPTION
Presentation by Katharina Zuegel at the 7th annual meeting of the MENA Senior Budget Officials held on 10-11 December 2014. Find more information at http://www.oecd.org/gov/budgetingTRANSCRIPT
BUDGET TRANSPARENCY A core pillar of Open Government
Katharina Zuegel MENA-OECD Governance Programme
• MENA-OECD Open Government Project
• Open Government
• Budget Transparency
• Budget transparency in Morocco and Tunisia
Agenda
MENA-OECD Open Government
Project
The support to MENA countries includes: Peer review of the open government framework with policy recommendations:
Highlighting opportunities and challenges for open government Measuring the performance of the country vis-à-vis OGP eligibility criteria and
recommendations to reach eligibility and elaborate an OGP Action Plan
Capacity building trainings International knowledge sharing conferences
OECD International
Open Government
Forum
Discussion between MENA Ministers and civil society at the OGP Summit
Promoting responsive, participatory and accountable governments that can foster socio-economic development
Open Government
What is Open Government? The OECD defines open government as “the transparency of government actions, the accessibility of government services and information, and the responsiveness of government to new ideas, demands and needs.
Open Government
Open Government Partnership (OGP)
Launched on 20 September 2011 by 8 countries with today 65 members, including Jordan, Tunisia and Morocco on its way to accession.
The OECD is an official multilateral partner
The OGP is a global partnership to improve the availability of information, promote citizen’s engagement, reinforce integrity and improve access to new technologies for transparency and accountability.
The OGP Process: Reach eligibility Elaborate an Action Plan in
consultation with citizens Self-report Independent Evaluation
Budget transparency – a pillar of open
government
OGP minimum eligibility criteria Budget transparency Publication of the Executive’s Budget Proposal and thee= Audit Report
Access to information
Public Officials Asset Disclosure
Citizen participation
OECD Open Government Principles Engagement Transparency Accountability Integrity
openness about policy intentions, formulation and implementation
broad consultation and debate on sources and use of public funds
OGP grand challenge: 3) More Effectively Managing Public Resources
Consequences of little budget transparency
• Possible consequences: • Insufficient control of the
budget process • Inefficient and
inappropriate use of public funds
• Corruption and other procedural abuses
Effects of budget transparency
• Improve decision-making • Facilitate engagement of citizens and Parliament • Better allocation of public resources & better policy choices • Accountability • Restore trust of citizens, business and donors in state institutions • Macro-economic stability and economic development
Why budget transparency?
1) Publication of Budget reports
OECD Best Practices for Budget
Transparency (2002)
The budget Pre-budget report Monthly reports Mid-year report Year-end report Pre-election report Long-term report
2) Specific disclosures
Economic assumptions Tax expenditures Financial liabilities and
financial assets Non-financial assets Employee pension
obligations Contingent liabilities
Are the economic assumptions underlying the budget and the methodology used to establish them published/publicly available?
OECD Best Practices for Budget
Transparency (2002)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2007
Publicly available Not publicly available
Note: Percentage of participating OECD countries (33 in 2012 and 33 in 2007).
3) Integrity, control and accountability
OECD Best Practices for Budget
Transparency (2002)
Accounting policies A summary of relevant accounting policies should accompany all reports
Systems and responsibility A dynamic system of internal financial controls, Each report should contain a statement of responsibility certifying that all
government decisions with a fiscal impact have been included in the report
Audit The year-end report audited by the Supreme Audit Institution
Audit reports scrutinised by Parliament
Public and parliamentary scrutiny Parliament has the opportunity and the resources to examine budget reports
All budget reports are freely available to the public via internet
The Finance Ministry promotes an understanding of the budget process by individual citizens and non-governmental organisations
OECD Draft Principles of Budgetary
Governance (2014)
Budgeting within fiscal
objectives
Quality, integrity &
independent audit
Comprehensive budget
accounting
Effective budget
execution
Alignment with medium-term strategic
plans and priorities
Performance, evaluation &
VFM
Transparency, openness & accessibility
Participative, Inclusive
& Realistic Debate
Fiscal Risks & Sustainability
Capital budgeting framework
Transparency and accessibility of the budget
Publication of all budget reports fully, promptly and routinely, and in a way that is accessible to citizens, in open data format
“citizen’s budget” or budget summary, in a standard and user-friendly format
the design and use of budget data for open government, integrity, programme evaluation and policy coordination
OECD Draft Principles of Budgetary
Governance (2014)
Evidence from
Government at a Glance
Countries with
citizen budget Countries
without citizen budget
inclusive, participative and realistic debate on budgetary choices
From access to information to engagement
Participation of Parliament ex ante as well as ex post
engagement of parliaments, citizens and civil society about key priorities, trade-offs, opportunity costs and value for money
OECD Draft Principles of Budgetary
Governance (2014)
Findings from the Open Government Review
Budget transparency in Tunisia
• Publication of the Executive Budget Proposal
• Enacted budget; Preparatory documents to budget; monthly reports; end-year report; audit report (effective internal and external control)
• Access to information law and Action Plan
Publication of budget
reports
• Convention for a joint commission on budget transparency
• Citizens budget 2014
• Marsad Budget (civil society initiative)
Civic engagement
• Revise calendar for the presentation of the Executive budget proposal and include non-financial performance data
• Build capacity of Parliament • Ensure that Parliament examines the documents
sent by the Audit Court
Role of Parliament
• Publish remaining budget documents (i.e. report preliminary to elections; long-term report)
• Include accounting policy; include declaration of responsibility
• Support re-use of budget data through open data
Publication of budget reports
Budget transparency in Tunisia
Recommendations of the Open Government Review
Budget transparency in Tunisia
Tunisia’s OGP Action Plan
Improvement of transparency in the financial field and in public procurement Publish missing budget reports in timely manner Development of open budget system Publication of data from budget management
system (ADEB)
Findings from the Open Government Review
Budget transparency in Morocco
• Publication of 6 of 8 essential budget reports (1 for internal use only)
• Publication of certain budget data in excel format (open format)
• Gender Impact Reports
Publication of budget
reports
• Guide on the Budget Law in Arabic
• Citizen Budget • Floussna.ma (civil society initiative)
Civic engagement
• Continuous reform, new Constitution and budget law reinforce transparency
• Reinforces role of parliament
New budget law
• Implement the new budget principles in adapting budget practices
New Budget Law
• Increase citizen participation in the budget process
• Reinforce role and capacity of Parliament Participation
• Improve budget data and publish it in open format
• Publish reports in timely manner
Publication of reports
Budget transparency in Morocco
Recommendations of the Open Government Review