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International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
International guidelines for data dissemination and fiscal transparency
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International guidelines for data dissemination and fiscal transparency

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Seminar "Opening Financial Data in Turkey: transparency, accessibility and citizen involvement" …

Seminar "Opening Financial Data in Turkey: transparency, accessibility and citizen involvement"

Aline Pennisi
Ankara, April 19 2012

Published in: Technology, Business
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  • 1. EU TWINNING PROJECT TR 08 IB FI 02 “ Improving Data Quality in Public Accounts” AB EŞLEŞTİRME PROJESİ “ Kamu Hesaplarında Veri Kalitesinin Artırılması”Opening Financial Data in Turkey: transparency, accessibility and citizen involvement Ankara, 19 April 2012 (Activity 1.7) 1 Twinning Project “Improving data quality in public accounts”
  • 2. EU TWINNING PROJECT TR 08 IB FI 02 “ Improving Data Quality in Public Accounts” AB EŞLEŞTİRME PROJESİ “ Kamu Hesaplarında Veri Kalitesinin Artırılması”International Guidelines for data dissemination and fiscal transparencyAline Pennisi (State General Budget Office / MoF Italy) 2 Twinning Project “Improving data quality in public accounts”
  • 3. Public finance data reporting and accessSince the late 1990s, major efforts at the international levelhave been deployed to promote more effective publicaccountability for the way in which governments raisetaxes, borrow, and spend public money.Fiscal transparency requires providing information aboutpast, present and future activities of government incollecting and allocating public resources and in a way that itbe:• comprehensive, reliable, timely, comparable (in time and space), understandable to the public [the fundamentals, up to now]• easily accessible, at detailed level (raw data), re-useable …. i.e. open data [evermore necessary….] 3 Twinning Project “Improving data quality in public accounts”
  • 4. Fiscal transparency: why is it deemed important?Although there is room for debate, there is a broad consensus onthe fact that fiscal transparency is relevant for:Better informed decisions (in government and outside it) o it helps to highlight potential risks to the fiscal outlook o it enables public debate on resource allocation o it encourages governments to pursue sound economic policies and achieve greater financial stabilityIncreased accountability of policy action o it strengthens its credibility and public understanding o it may enhance social consensusIncreased accountability of public officials o It makes it easier to detect (and reduce) corruptionBetter access to capital marketsIn any case it is more and more considered a right of citizensto have access to detailed information on governmentsactivities…. 4 Twinning Project “Improving data quality in public accounts”
  • 5. International Guidelines on budget transparencyGuidelines and assessments on the extent to which countries satisfythem are promoted by international organizations and civil societyorganizations1) IMF Fiscal Transparency Code (since 1998, revised in 2007)http://www.imf.org/external/np/fad/trans/code.htm2) OECD Best Practices for Budget Transparency (since 2001)http://www.oecd. org/dataoecd/33/13/1905258.pdf3) Open Budget Initiative (since 2005)http:// www.openbudgetindex.org.4) Open Government Partnership (OGP) on Budget Transparency (since 2011)http://www.opengovpartnership.org/ 5 Twinning Project “Improving data quality in public accounts”
  • 6. Good practices on what should be reported to the public Internationally accepted good practices require governments to publish at least eight key budget reports at various points in the budget year: Pre-Budget Statement Executive’s Budget Proposal Enacted Budget Citizens Budget In-Year Monthly Reports Mid-Year Review Year-End Report Audit Report. 6 Twinning Project “Improving data quality in public accounts”
  • 7. Fundamental aspects of fiscal transparency /1 ComprehensivenessThe budget documentation, including the final accounts, and other publishedfiscal reports should cover all budgetary and extra-budgetaryactivities: o transactions related to commercial activities of government agencies (user fees) that are not included in their budgeted revenue and expenditure; o social security funds, o nonmarket nonprofit institutions, financed by government transfers or earmarked revenues o revolving funds o tax expenditures o contingent liabilities o quasi-fiscal activitiesThe central government should also publish information on: o the level and composition of its debt and financial assets, significant non-debt liabilities (including pension rights, guarantee exposure, and other contractual obligations), and natural resource assets. o the fiscal position of subnational governments and the finances of public corporations. 7 Twinning Project “Improving data quality in public accounts”
  • 8. Fundamental aspects of fiscal transparency /2 ReliabilityFiscal data should meet accepted data quality standards, related todefinitions and classifications: o accounting policies meet generally accepted accounting standards o international standard classifications to be used for economic and functional descriptions (e.g. COFOG / SEC), on the side of national classificationsand related to checking the data: o automated procedures are used to facilitate the monitoring of the accuracy of data reported by individual government sector units for internal consistency testing of each institution’s data (e.g., cross- checks). Data inconsistencies and out-of-trend values are confirmed with reporting units, and documented. o data are assessed by checking across different sources (e.g., payables by one part of the general government are equal to receivables by another, checking independent creditor and debtor sources, and domestic bank financing records compared with banking records, etc.). o sound techniques are in place to estimate missing data, when relevant (to deal with coverage problems).. 8 Twinning Project “Improving data quality in public accounts”
  • 9. Fundamental aspects of fiscal transparency /3 Comparability (in time and space) and timelinesso fiscal aggregate outcomes are compared with previous forecasts and with outturns of previous yearso dissemination of advance-release calendarso simultaneous release to all interested partieso Monthly updates on expenditures and revenues, which show progress on implementing the budget  They should be released within four weeks of the end of each month  They should contain the amount of revenue and expenditure in each month and year-to-date  A comparison should be made with the forecast amounts of monthly revenue and expenditure for the same period. Any in-year adjustments to the original forecast should be shown separately.  A brief commentary should accompany the numerical data. If a significant divergence between actual and forecast amounts occurs, an explanation should be made.  Expenditures should be classified by major administrative units (e.g., ministry, agency), by economic and functional categories should also be presented.  Information on commitments in additional to information on payments  The reports should also contain information on the government’s borrowing activity 9 Twinning Project “Improving data quality in public accounts”
  • 10. Fundamental aspects of fiscal transparency /4 Understandable to the publicThe understanding of the budget process by individual citizens and non-governmental organizations should actively be promoted: o Fiscal information should be presented in a way that facilitates policy analysis  Fiscal data should be reported on a gross basis, distinguishing revenue, expenditure, and financing  Expenditure should be classified by economic, functional, and administrative category. o A clear and simple summary guide to the budget should be widely distributed at the time of the annual budget. o Budget presentations and accounts contain clear statements of the government’s objectives (e.g. missions and programs) as well as a listing of the items on which money is spent (as in traditional line-item budgeting). o Results of previous policies should also be evaluated against their stated objectives, by measuring also measure outputs and outcomes in relation to these objectives. ….. and a Citizen’s Budget should be made available (the government’swork is highly technical, it is not sufficient to simply disclose specialized documents.Access to information means using formats to access information in a language thatordinary people can understand and appreciate) 10 Twinning Project “Improving data quality in public accounts”
  • 11. Where does Turkey stand according to the major international assessments?1In Turkey the budget is unified, but three central institutions are involved inbudget preparation, execution and internal control: o The MoF is responsible for budget preparation, budget execution, accounting and reporting, and revenue collection. o The State Planning Organisation (SPO), now Ministry of Development is responsible, among other duties, for preparing the public investment program and the macroeconomic framework. o The Undersecretariat of the Treasury is responsible for debt and cash management and for exercising state ownership rights in state-owned enterprises and public banks. 11 Twinning Project “Improving data quality in public accounts”
  • 12. Where does Turkey stand according to the major international assessments?2Open Budget Index: o Turkey’s ranking 57 over 100 in 2010 o Improved over time … o Comparable to several neighbors, and to Italy … but lower than EU averageOBI score Turkey OBI score 2010 several countries 12 Twinning Project “Improving data quality in public accounts”
  • 13. New challenges for fiscal transparencyToday, most people would agree that the new standard ofpublic transparency is measured by the amount, significanceand re-usability of data released on the web.Data on revenues and expenditures should be easilyaccessible, digital, re-useable from a technical andlegal point of view, machine readable, ……. === opendataThe idea is that with “open data” the public can sort,search, and transform the information to meet theirneeds and answer detailed questions: o how much of my tax money is spent on cancer research? o how much public money is spent for schools in my region? o how much revenue is raised by taxing fuel? 13 Twinning Project “Improving data quality in public accounts”
  • 14. New challenges for fiscal transparencySince 2009, governments are making importantpronouncements on the principles for transparency and onthe value of making public data widely accessible forpractical applications in and out of civic life: o the US (Obama memorandum 2009) o the UK (http://data.gov.uk/ ) o … and many others following and launching “open data portals”In the EU, much of the debate revolves around Directive2003/98 for the re-use Public Sector Informationhttp://ec.europa.eu/information_society/policy/psi/index_en.htmIts main objective of is to establish “a minimum set of rulesgoverning the re-use and the practical means of facilitatingre-use of existing documents held by public sector bodies ofthe Member States”. 14 Twinning Project “Improving data quality in public accounts”
  • 15. Fiscal transparency and citizen’s participation in an open data perspectiveExamples of Government initiatives:US Recovery Act http://www.recovery.gov/Pages/default.aspxUK COINS - the Combined On-line Information Systemhttp://hm-treasury.gov.uk/psr_coins_faqs.htm, http://hm-treasury.gov.uk/psr_coins_data.htm,http://issuu.com/hmtreasury/docs/coins_coding_presentation_july_10UK Public spending & reporting transparencyhttp://hm-treasury.gov.uk/psr_transparency_index.htmItaly State general budgetExamples of Civil society initiatives:UK Where does my money go http://wheredoesmymoneygo.org/UK Guardian Department expenditure over 25 thousand poundshttp://www.guardian.co.uk/politics/interactive/2010/nov/19/government-data-interactive-guideEU Farm Subsidies http://farmsubsidy.org/UK Local Council Spending http://openlylocal.com/councils/spendingItaly Chamber of Deputies expenditures / LinkedOpenCamera 15 Twinning Project “Improving data quality in public accounts”
  • 16. Italy – Chamber of Deputies, representation of raw data 16 Twinning Project “Improving data quality in public accounts” 16
  • 17. Italian State Budget – requirements on data dissemination• The reformed accounting and public finance law requires the publication in a usable electronic format in the MoF website of the bills and budget laws, all in-year budgetary variations and the final accounts. Legge n. 196/2009 TITOLO II - MISURE PER LA TRASPARENZA E LA CONTROLLABILITÀ DELLA SPESA Art. 6 (Accesso alle banche dati e pubblicità di elementi informativi) 1. Ai fini del controllo parlamentare sulla finanza pubblica, anche di settore, la Camera dei deputati e il Senato della Repubblica hanno accesso, sulla base di apposite intese, alle banche dati delle amministrazioni pubbliche e ad ogni altra fonte informativa gestita da soggetti pubblici rilevante ai fini del controllo della finanza pubblica. 2. Nel sito del Ministero delleconomia e delle finanze sono pubblicati, in formato elettronico elaborabile, i disegni di legge e le leggi di cui agli articoli 11, 21, 33 e 35 con i rispettivi allegati. 3. I decreti di variazione al bilancio adottati in conseguenza dellapprovazione di provvedimenti legislativi sono resi disponibili, sul sito del Ministero delleconomia e delle finanze, il giorno successivo a quello della loro registrazione da parte della Corte dei conti. 4. Il Comitato interministeriale per la programmazione economica (CIPE) trasmette in via telematica alle Camere le proprie delibere entro dieci giorni dalla data della registrazione da parte della Corte dei 17 conti ovvero, ove questa non sia prevista, entro dieci giorni dalla data della loro adozione. Twinning Project “Improving data quality in public accounts”
  • 18. Evolution of the Italian State Budget dissemination standards e.g. Budget bill (PDF - 1.2 MB)http://www.rgs.tesoro.it/VERSIONE-I/Bilancio-d/Bilancio-i/ http://www.rgs.tesoro.it/VERSIONE- Table, databases and I/Servizio-s/Studi-e-do/La-spesa-d/ raw data 18 Twinning Project “Improving data quality in public accounts”
  • 19. Raw data and aggregate reporting standards: both are needed The release of “raw” data is very significant in itself and it provides an opportunity for many interested parties to understand public finances and answer specific and significant questions on revenue and expenditures. However, it does not by itself make the governments finances necessarily more “scrutable”: o It contains highly technical information, requiring detailed knowledge of variable definitions and encoding schemes o Data files are often too large to load into widely available analysis tools such as Microsoft Excel, a common tool-of-choice for many “simple” data investigators o It must be complemented by metadata and also by a selection of (more or less flexible) summary tables and aggregate data 19 Twinning Project “Improving data quality in public accounts”

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