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Status of Budget Transparency in PEMPAL

This report presents the results of the 2015 Open Budget Survey and highlights the challenges and opportunities for improving budget literacy and transparency within the PEMPAL BCOP member countries. It discusses the accessibility of budget documents to citizens and the level of citizen participation in the budget process.

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Status of Budget Transparency in PEMPAL

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  1. Status of Budget Transparency in PEMPAL BCOP Budget Literacy and Transparency Working Group Deanna Aubrey, World Bank 23 February 2016

  2. Objectives To provide overview of key results from 2015 Open Budget Survey 17 of the 23 PEMPAL members participated in 2015 OBI (IACOP members Hungary and Czech Republic included) 6 BCOP members did not participate: Armenia, Belarus, Kosovo, Moldova, Montenegro and Uzbekistan. Revisit relevant 2015 PEMPAL survey results Provides some information for missing countries above regarding public availability of budget documents except for Kosovo (WG member) and Montenegro (BCOP member) Reminder of the challenges identified in survey as preventing accessiblity to budget documentation and to improving budget literacy

  3. PART 1: ACCESSIBILITY OF KEY BUDGET DOCUMENTATION TO CITIZENS

  4. Public Availability of Budget Documents (1) Of the 21 PEMPAL member countries who participated in either the 2015 OBI or PEMPAL surveys, only Bulgaria, Kyrgyz Republic and Russian Federation make all their budget documentation accessible to the public. The worst category still remains citizens budget, which only 8 countries have. Countries with citizens budgets include: Azerbaijan Bulgaria Croatia Czech Republic Georgia Kyrgyz Republic Russian Federation Tajikistan.

  5. Public Availability of Budget Documents (2)

  6. PART 2: OPEN BUDGET INDEX AND CITIZEN PARTICIPATION RESULTS

  7. 2015 Open Budget Index Results The following results were achieved by PEMPAL members: PEMPAL average OBI score 52/100 – higher than international average of 45. Substantial information provided (61-80/100) by 5 countries: Romania, Russian Federation, Czech Republic, Georgia, and Bulgaria Limited information provided (41-60) by 9 countries: Kyrgyz Republic, Croatia, Kazakhstan, Azerbaijan, Hungary, Serbia, Ukraine, Turkey and Bosnia and Herzegovina Minimal information provided (21-40) by 3 countries: Albania, Macedonia and Tajikistan Extensive information provided by only 5 countries: New Zealand (88), Sweden (87), South Africa (86), Norway (84), United States (81).

  8. Open Budget Index Results: What Changed? PEMPAL scores between 2012 and 2015 (noting up to +/- 5 change is not seen by IBP as significant change in results): 6 countries experienced decreased scores: Albania (-9), BiH (-7), Croatia (-8), Czech Republic (-6), Turkey (-6), Ukraine (-8) 3 countries remained on same score: Bulgaria, Macedonia, Russian Federation 7 countries improved their score: Azerbaijan (+9), Georgia(+11), Kazakhstan (+3), Kyrgyz Republic (+34), Romania (+28), Serbia (+8), Tajikistan (+8). 1 new PEMPAL country joined survey: Hungary (IACOP member) Most improved PEMPAL country is Kyrgyz Republic who increased score from 20 in 2012 to 54 in 2015. Romania also achieved significant progress rising form 47 to 75.

  9. Scores from Public Participation Indicators (1) 2015 Open Budget Survey Report includes 16 questions examining opportunities for public participation in budget processes. Itdoes not measure quality or extent of this participation only if governments create necessary conditions for structured, direct engagement between the public and the government (including the executive, legislature and SAIs). PEMPAL average score was higher at 29/100 (compared to international average 25/100) but indicating lots of opportunity for reform. Kyrgyz Republic highest score among PEMPAL countries at 52/100.

  10. 0 -40 Weak participation 41-60 Limited 61-100 Adequate

  11. Scores from Public Participation Indicators (2) Of 24 countries who provide sufficient budget information (OBI scores above 60) only seven score adequate (61-100) on scores from public participation indicators (South Korea, Norway, Brazil, United States, New Zealand, South Africa and the Philippines). Sweden 87 OBI but 48 on public participation; Germany 71 OBI but only 23 on public participation. If public has greater access to government information but no formal opportunities to use it to influence policy, its ability to hold government to account is significantly diminished. This undermines positive impacts of improved budget transparency.

  12. What are the Key Challenges to improving Budget Literacy?

  13. Challenges Preventing Accessibility of Budget Documentation

  14. References for More Information Citizens Budgets (translated for this meeting): The Power of Making it Simple: A Government Guide to Developing Citizens Budgets, International Budget Partnership, April, 2012 Citizens’ Budget of Kyrgyz Republic OBI 2015 rankings tables (Graph rankings; and Annex C and D: Available English and Russian only) Guidelines of the Russian Federation on Citizens’ Budget (September, 2015) Recommendations on Citizens Budget (prepared for Moldova Ministry of Finance), 2013, Analytical Center “Expert Group”, Moldova

  15. Other References Public Participation GIFT has compiled case studies to develop guidelines for public participation and a menu of good practices for participation in the budget process. http://www.fiscaltransparency.net/resources-all/ (Public Participation and the Budget Cycle: Lessons from Country Examples - English only) Several guidelines on how to conduct budget hearings are available and can be translated on request of Working Group Other Examples of Citizen Budgets, IMF, IBP and OECD guidelines related to content and transparency of budget documentation can be found here (translated for the 2014 PEMPAL Moscow meeting on fiscal transparency and accountability): http://www.pempal.org/event/eventitem/read/111/288http://www.pempal.org/event/eventitem/read/111/287

  16. Thank you for your attention!

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