OECD Public Sector Accruals Symposium - Ronnie Downes

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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.htm

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OECD Public Sector Accruals Symposium - Ronnie Downes

  1. 1. 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
  2. 2. OECD’s starting point • “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
  3. 3. 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
  4. 4. 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
  5. 5. OECD Public Governance framework Integrity & anticorruption Open procurement Public service innovation Quality of Regulation Coordination across levels of government ICT & e-govt Budgeting & PFM Strategic centre of government Delivering government objectives Strategic Citizen public sector engagement HR Managing complex risks
  6. 6. 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 * Wehner & Rezio, IBP 2011 For what? • Participation • Trust • Lower costs • Integrity • Quality • Stability • Better decisions • Impacts
  7. 7. Elements disclosed in the budget 2012 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Medium-term fiscal fiscal policy objectives Budget priorities 2007 Clearly defined Linkage of Medium-term Non- financial appropriations appropriations perspective on performance for legislature to total revenue targets vote administrative & expenditure units 7 Text of legislation of policies proposed in budget
  8. 8. ¾ publish the macroeconomic assumptions and methodology Publicly available Not publicly available 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2012 2007 8
  9. 9. Time for legislative budget debate 3 months or more Less than 3 months 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% No.of months budget presented before start of FY No.of months for legislative debate 9
  10. 10. Fiscal rules Percentage of OECD countries using fiscal rules 96% 94% 92% 90% 88% 86% 84% 82% 80% 78% 76% 74% 2012 2007
  11. 11. Number of specialised legislative budget research units has increased Specialised budget research office exists No specialised budget research office exists 25 20 15 10 5 0 2012 2007 11
  12. 12. More countries have established or are establishing independent fiscal institution Fig. 8.13 Countries with independent fiscal institutions No 30 Yes Fig. 8.14 Independent fiscal institutions - number of staff 6 5 25 4 20 15 3 10 2 5 1 0 0 2007 2013 None >10 10 - 20 12 21 - 60 More than 100
  13. 13. draft Principles of Good Budgetary Governance Fiscal objectives Top-down budgeting Transparency, Participation openness & accessibility Fiscal Risks & Sustainability Mediumterm clarity Participation, Transparency Inclusiveness & Openness & Realism Quality, Integrity & Independence Strategic plans & priorities Performance, Performance, Evaluation & evaluation & VFM VFM True, full & fair budget accounting
  14. 14. 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
  15. 15. 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?
  16. 16. 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?
  17. 17. Thank you budgetprinciples@oecd.org

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