Budgets: Revealing Ideologies and Ensuring Economic Justice

1. by Deepak L Xavier

3. Origin of “Budget” Etymological Meaning: French word ‘bougette’ –means a small bag or a briefcase containing the financial proposals The term budget has been used for the annual financial plan presentation since 1733.

4. What is Budget? Different views about budget: Common View: A Statement of expected income and estimated expenditure. Technical View: Document showing government expenditure and revenue proposals. Our View: Statement of policy priorities and fiscal targets

5. Why “Budgets” Conceal More than they Reveal?

7. Budget Vs Ideology? • “the budget is the skeleton of the state stripped of all misleading ideologies” – Joseph Schumpeter. • When the misleading ideologies are stripped away, what is left is the actual ideology of those who hold power – budget is the actual proof of a government’s ideology, and its commitment towards various sections of the population and sectors of the economy.

8. Why bother about Budget? – I • Budget is central to governance • It is the most vital instrument at the disposal of the State to deliver a wide range of responsibilities – translate promises and commitments into practise • Budgets affect every sector of the economy and every section of the population • It reflects a government's social and economic policy priorities more than any other document, translating policies, political commitments, and goals into decisions on where funds should be spent, and on whom and how these funds should be raised

9. Why bother about Budget? – II • The policy priorities driving the Budget and implementation of the Budget proposals are of direct relevance to the entire population • But frequently people from the most vulnerable sections of society are the ones who most severely suffer the consequences. • The social exclusion extends to the economic realms of wages, jobs, education, and land – social exclusion is economics! • The marginalised suffer from the dual discrimination of severe economic exploitation and social discrimination. • Historically, mass/social movements have worked mainly on civil and political rights – not much work on economic rights. • Budget work has the potential to ensure economic justice, which in turn will empower the marginalised to regain civil, political, social and cultural rights.

10. What is budget work? • Budget analysis is the process through which the government budgets are scrutinised from the perspective of poor and marginalised. • Focus is on critically evaluating budgetary allocations made by governments and tracking expenditure undertaken on the basis of those allocations to determine the extent to which policy translates into outcomes. Budget work is an effective tool for - making governance accountable - advocacy for policy changes

11. Budget Cycle

12. What Civil Society budget groups attempt to do? • Demystify budget and budgetary process – for transparency and making it people friendly • Make governance accountable to the people • Make policy makers sensitive to popular needs and concerns • Awareness on Government Performance • Create Public Pressure on issues of the marginalised sections • Initiate public argument and debate around macro economic issues from peoples’ perspective • Engaging institutions of governance to empower the marginalised through budget advocacy and Capacity Building • Strategize the use of knowledge to influence policies and politics of the state

13. Budget Advocacy – an integral part of budget work • Budget analysis is very important to scrutinize the Government Budgets from any perspective. • Mere analysis of the Budgets alone cannot influence the policy making unless it is supported by proper public action or advocacy to promote the findings in public forums so as to influence the common mindset. • Budget analysis is an advocacy tool for developing public understanding on policy priorities of the Government. This would eventually empower the people to seek Governments’ accountability. • This process would provide us a large operative space that is unexplored to tactfully engage with the State, and this alternative mechanism using democratic space goes beyond traditional means of public activism. ‘your opponents pick your tactics’ Nelson Mandela

14. 3 Pillars of Action Based Budget Work Bureaucratic Action (for accountable execution of the programmes) Civil Society Budget work Demystifying information for Political Action(Lobbying for the interests of the marginalised sections) Public Action(For initiating debates through Media, and other forums)

15. Some advocacy tools used in budget work • Research – demystification and analysis of budget • Networking & Coalition Building – responding to needs, initiating cross learning and amplifying the issues • Lobbying • Campaigning • Media advocacy • Legislative Advocacy – providing information and research support to legislators and other decision makers • Training & Capacity Building

16. Outcomes of Civil Society Budget Work • Demystification enables better exchange of Information • Informed demand for accountable, transparent and equitable resource mobilisation/use. • People are empowered to participate in budget-making process, expenditure tracking and performance monitoring • Creates space for mutually acceptable institutional arrangements between the government machinery and civil society

17. Success factors - I • Accuracy, accessibility, timeliness – three pillars of good budget analysis • Effective budget work requires analysis AND advocacy • Some budget changes require long-term engagement

18. Success factors - II • Focus on whole budget process / cycle – there is work to do in every stage • Need for flexible political and organisational strategy • Dedicated organisation capacity & investing in staff

19. To be SMART in Budget work, your objectives should be: SMART

20. SPECIFIC • What would you like the govt. to do? • Specify an action – the solution that you want • Be SPECIFIC and CLEAR • Set a specific goal to introduce a social security programme for unemployed / unorganised sector workers

21. MEASURABLE • If you can’t measure it, you can’t manage it • Here ‘measurement’ refers to the AMOUNT you want govt. to raise or spend differently • We want Rs. 50 billion to be spent on constructing toilets for one million households in rural India. • Not all problems can be solved by the budget • Discrimination against women cannot be solved by budget alone

22. ATTAINABLE • Goals you set which are too far out of reach, you and your partners probably won’t commit to doing • ‘Make Poverty History’ is not attainable in the short term. But annual targets on MDGs • BIG enough to matter, SMALL enough to make a difference

23. REALISTIC • Budgets are rigid because of political compromises • Everything can’t be changed immediately • Propose a plan or a way of getting there which makes the goal realistic • How can what you propose be done in this year’s budget? • How much do you want the govt. to spend and where should they get it?

24. TIMELY • Be realistic, but set a timeframe for the goal: for this financial year, for 2015 • If you don’t set a time or too long a timeframe, the commitment is too vague • For big and long-term goals – progressive realisation

25. Popular Arguments against Civil Society Budget work • Budgets must be secret • CSOs can destroy budget integrity • NGOs pursue sectional & sectoral interests • Govt. has mandate to prepare the budget • Potential risks of budgets can be managed

26. Strong Arguments for Civil Society engagement in Budget Processes • Simplifying the budget and deepening debate: This augments the outreach capacity of the state and legislature and builds understanding and participation among citizens. Simplified guides to the budget may cover the budget process, the structure of the budget, budget trends and current allocations, and some discussion of current issues. • Collating, synthesizing and disseminating budget information: These activities support legislature and civil society inputs into the budget process. The information may include the dissemination of national or regional (state level) information on social expenditures; or the identification and dissemination of local and international best practice. • Independent critical analysis: Civil society budget analysis can augment the research capacity of legislatures and the media and, sometimes, in the executive. It may provide one of the few sources of specialized data and analysis on the impact of the budget on the poor.

27. Strong Arguments for Civil Society engagement in Budget Processes • Bringing new information to budget decision-making: Civil society budget groups are often able to be in close, regular contact with citizens and interest groups. This allows them to collate unique information on citizen priorities, non-government perspectives on the budget, expenditure tracking and project impact analysis. • Training: Many civil society organizations develop budget training expertise that is directed at augmenting the analytical and advocacy capacity of other civil society organizations, legislatures and the media resulting in stronger interventions and oversight. • Building accountability: Through its analysis and dissemination activities, civil society organizations can assist citizens and the legislature to reinforce channels of accountability. This may occur, for example, when groups provide accessible information or pursue the findings of the auditor general with relevant interest groups. It may also follow from monitoring or impact measurement activities that test or augment the data emerging from the auditor general’s report.

28. Major Challenges • Analytical & advocacy skills • Macroeconomic policy environment • Democratising Budget Work • Budget transparency & participation in the budget process • Working with the executive • Systemic engagement with the legislature & policy makers • Understanding & ensuring IMPACT on accountability and policy

29. I will give you a talisman… Recall the face of the poorest and the weakest man whom you may have seen, and ask yourself if the step you contemplate is going to be of any use to him. Will he gain anything by it? Will it restore him to a control over his own life and destiny? Then you will find your doubts and yourself melting away… FINALLY… Every action needs to be inspired and informed by Mahatma Gandhi’s talisman: