This document discusses budget transparency and the Open Budget Index. It provides information on:
- Why budget transparency and accountability are important, such as for fiscal discipline and identifying spending leakages.
- How the Open Budget Index is calculated, through surveys of over 100 countries that evaluate public access to budget documents and oversight opportunities.
- The key budget documents that are assessed, such as pre-budget statements, enacted budgets, and audit reports.
- How scores on the index are assigned and interpreted, with higher scores indicating more extensive information provided to citizens.
- Trends from the last 6 years of Open Budget Index surveys showing some countries improving transparency significantly.
Unveiling the Top Chartered Accountants in India and Their Staggering Net Worth
Budget Transparency Case Study on Open Budget Index
1. 1
Budget Transparency
A case of Open Budget Index
Gulbaz Ali Khan
Senior Manager-Governance & CD
Citizen Engagement for Social Service Delivery
Government of Khyber
Pakhtunkhwa
2. Citizen Engagement for Social Service Delivery
Why budget transparency &
Accountability?
• Transparency helps achieve cheaper credit
• Opacity in fiscal matters can undermine fiscal
discipline
• Public participation help improve public finance
efficiency and identify leakages
• Transparency and public participation fosters
resource equity
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3. Citizen Engagement for Social Service Delivery
Public spending outcomes: the hope
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Benefits
Governm
ent
Countries with well-
designed policies are
supposed to leverage
their own & external
resources to produce
human development
outcomes…
Public
Services
4. Citizen Engagement for Social Service Delivery
But in reality
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Parents
Central Govt
Schools
LocalGovt
Benefits
…but, there are many
weak links in
implementation, and
much needs to come
together to make
services work &
produce desirable
outcomes
Leakage of Funds
Public
Services
Inappropriate spending (e.g. high
teacher salaries; Insufficient supply of
textbooks
Low-quality instruction
Lack of demand
Wrong Allocations
5. Citizen Engagement for Social Service Delivery
Calculating the Open Budget Index
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• A comprehensive assessment that evaluates:
1. public access to timely & comprehensive budget
information throughout the budget process
2. opportunities to participate in the budget process
3. strength of oversight: legislatures & external auditors
• Based on guidelines developed by the IMF, OECD, INTOSAI,
and the IBP.
• 2012 survey covers more than 100 countries;2010 Survey
covers 94 countries (13 countries in East Asia & the Pacific);
2008 Survey - 85 countries; 2006 Survey - 59 countries.
6. Citizen Engagement for Social Service Delivery
Rigorous Survey Methodology
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• Data quality assured through five-step process:
• Survey completed by nonpartisan expert country
researcher
• Peer reviews provided by two independent, anonymous,
expert reviewers per country
• IBP checks internal consistency and accuracy against
publicly available data
• Government review (optional)
• IBP referees differences in answers between researchers
and reviewers
7. Citizen Engagement for Social Service Delivery
Open Budget Questionnaire
• A total of 122 questions, out of this 91 formulate
Open Budget Index
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8. Citizen Engagement for Social Service Delivery
Key Budget Documents
Formulation Stage
• Pre-Budget Statement, which includes the assumptions: used to develop the
budget, such as total expected revenue, expenditure, and debt levels, and broad
sector allocations (Question 72, 73, 74)
• Executive’s Budget Proposal, which presents the government’s detailed plans, in
terms of policy priorities and budgets for each ministry and agency, for the coming
budget year (1-55, 67,68,69)
Budget Approval Stage
• Enacted Budget, which is the legal document that authorizes the executive to
implement the policy measures the budget contains. The Enacted Budget is issued
by the legislature after it approves (sometimes with amendments) the budget
proposal presented to it by the executive
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9. Citizen Engagement for Social Service Delivery
Key Budget Documents
Budget Execution
• In-Year Reports, which include information on revenues collected, actual
expenditures made, and debt incurred at a given point in time, generally through
monthly or quarterly publications (Question 84-91)
• Mid-Year Review, which summarizes the actual budget data for the first six
months of the year (revenues, expenditures, and debt), reassesses the economic
assumptions upon which the budget was initially drafted, and adjusts the budget
figures for the remaining six months accordingly (Question 93-96)
• Year-End Report, which shows the situation of the government’s accounts at the
end of the fiscal year and ideally includes an evaluation of the progress made
toward achieving the policy goals spelled out in the Enacted Budget (102-111)
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10. Citizen Engagement for Social Service Delivery
Key Budget Documents
Audit Report
• Audit Report, in which the supreme audit institution evaluates the
financial performance of the government in the previous budget year;
audits can also cover specific agencies and nonfinancial aspects of the
executive’s performance (Question 112-114,116,120-122)
Citizen Budget
• a simplified version of a budget document that uses nontechnical
language and accessible formats in order to facilitate citizens’
understanding of, and engagement with, the government’s plans and
actions during the budget year (Question 61)
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11. Citizen Engagement for Social Service Delivery
How scores are assigned?
• An “a” response indicates that a standard is fully met, while a
“d” response indicates a standard is not met at all. The fifth
response is “e,” or not applicable.
• For aggregating the responses, the numeric score of 100
percent was awarded for an “a” response, 67 percent for a
“b” response, 33 percent for a “c” response, and 0 for a “d”
response.
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12. Citizen Engagement for Social Service Delivery
How scores are interpreted?
• 81 to 100 percent -provides extensive information to citizens
• 61 to 80 percent- provides significant information to citizens
• 41 to 60 percent-provides some information to citizens
• 21 to 40 percent- provides minimal information to citizens
• Scores below 20 percent- provides scant, or no information to
citizens.
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13. Citizen Engagement for Social Service Delivery
Last 6 years of OBI Survey
• From 40 countries to more than 100 countries
• OBI average score improved from 47 to 57. Fifteen
countries show consistent progress
• 14 countries improved transparency by 15 points
• 14 countries score less than 40 in 2006 jumped from
25 to 41 in 2012, 64% improvement
• 16 countries score b/w 41-60 in 2006, rose from 48
in 2006 to 57 in 2012, 20% improvement
• 2% improvement in countries score above 60 over
2006-2012
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