This document summarizes a presentation given at the Global Conference on Budget Formulation and Enactment in Montreal, Canada on enhancing parliament's role through independent budget analysis. The presentation discusses the importance of open and transparent national budgets. It explains why budgets should be open to the public, recent trends in budget openness globally, and the key roles parliament can play in increasing budget transparency, including through legal and policy frameworks, engagement of parliamentary committees, coalition building, and capacity building. The presentation concludes by discussing the SADC Association of Parliamentary Budget Committees as a resource to promote stronger budget oversight and transparency across the SADC region.

1. P R E S E N T A T I O N S H A R E D A T T H E G L O B A L C O N F E R E N C E ( W B I –
M C G I L L U N I V E R S I T Y , M O N T R E A L C A N A D A ) O N
BUDGET FORMULATION AND ENACTMENT,
ENHANCING PARLIAMENT’S ROLE THROUGH
INDEPENDENT BUDGET ANALYSIS
BY
RONGAI CHIZEMA
SAPST
B E S T W E S T E R N V I L L E - M A R I E H O T E L & S U I T E S
1 7 – 1 9 J U N E , 2 0 1 3
Open Budgeting

2. Structure of Presentation
 Understanding budgeting in principle
 Reflection of Concept of Open Budgets
 Nature of Open Budget Initiatives, and Impacts
 Parliament and the Budget process
 A framework for collaboration among non state actors
 Some conclusions and recommendations

3. Importance of the National Budget
 The budget is not just a technical instrument compiling income
and expenditure. It is the most important policy statement made
by the Executive in the course of the year. It reflects the
fundamental values underlying national policy. It outlines the
government's views of the socio-economic state of the nation.
 The budget is governments’ most important economic policy tool.
Public budgets translate;-
 government’s policies
 political commitments
 revenue collection
 expenditure of funds to meet the country’s competing needs

4. Importance of the Budget Contd
 It is a declaration of the government's fiscal,
financial and economic objectives and reflects its
social and economic priorities. The budget further
provides a valuable measure of the government's
future intentions and past performance.
 A budget is a government’s plan on the use public
resources to meet the citizens’ needs.

5. Why Open Budgets
 Given the earlier definitions of budgets, fiscal planning is at the
centre of the fight against poverty and hence sustainable human
advancement;,
 If budgets are an effective tool at government’s disposal to meet
people’ aspirations and priorities, then the need for transparency
and accountability in this game plan can not be overemphasized;,
 In essence budgets have to be more responsive to the needs and of
the marginalized, and low income segments of the society.
 Key toward bringing out resource leakages through corruption,
inefficiency and limited efficacy in public finance management;

6. Why Open Budgets
 Given this discussion, it therefore becomes imperative that budget
systems be more transparent, and accountable to the public;,
 Transparency and accountability are hallmarks of a good political
and economic governance framework, and hence a pillar for
participatory democracy;,
 The citizenry has a right to information and a stake over decisions
that have a bearing on their well being, enhancing their ability to
hold the policy makers to account;,
 This scenario leads to better budget decisions and budgetary
outcomes;,

7. Why Open Budgets
 Publicizing the state’s fiscal affairs, enhances public awareness, and
can serve as a credible measure of the quality of budget decisions, and
hence maximize budgetary outcomes;,
 This also enriches public debate, and hence foster better policy
making, as well as build social cohesion among citizens;,
 Thus budget transparency is a strategic asset that enhances the
citizens’ ability to be involved in public policy making, and hence
broaden the scope and their horizon to hold the executive
accountable;,
 Global Initiatives for Transparency: - International Budget
Partnership (IBP), Open Government Partnership (OGP), Global
Initiative for Fiscal Transparency (GIFT), and International Aid
Transparency Initiative (IATI).

8. Key Budget Documents and Openness

9. Drafting
Source: Idasa
Legislative
Stage
Budget
Execution
Audit
Stage
Strategic direction of policy Oversight and accountability
Pre- budget
statement
Publication of
economic
assumptions
and fiscal risk
Multi-year
framework
Improved budget
documentation
Publication of
assumptions and
parameters
Comprehensive
coverage / scope
Useful
classifications
Information on
priorities &
objectives
Mid-year report
Actual spending
information
Sectoral
performance
information
Timely and
accessible
audit reports
Reporting on
achievements
of spending
ENGENDERING TRANSPARENCY IN BUDGETS

10. Recent Trends in Open Budgeting

11. Recent Trends in Open Budgeting
 Based on the Open Budget Survey for 2012 done by IBP, and released
on 23 January, 2013 budget transparency remains weak globally;,
 77 countries of the 100 surveyed fail to meet the basic standards of
budget transparency, yet the same countries host 50% of the world’s
population;,
 It also notes that governments publish less than 50% of required
budget data, and only 23% of the countries surveyed provide citizens
with comprehensive budget information, whilst 21 do not even publish
the Executive’s budget proposal;,
 Slow improvement in budget openness – 20% increase in budget
transparency scores in 40 countries: 2006 – 2012.

12. Recent Trends in Open Budgeting
 According to OBI 2012, Bolivia, China, Equatorial Guinea,
Myanmar, Qatar, Egypt, Sri – Lanka, and Zambia are the
worst performers.
 Notable improvements have been noted for: Honduras,
Afghanistan, Sao – Tome, Philippines.
 Limited opportunities for public/ civic engagement in the budget
process;,
 Weak oversight institutional capacity, - Supreme Audit Institutions
(SAI), Legislature – powers and independence.

13. Table 1: Open Budget Index (OBI) Scores for
2012
COUNTRY PUBLIC
ENGAGEM
ENT
LEGISLATI
VE
STRENGTH
SAI
STRENGT
H
OVERAL
SCORE
Angola 6 18 25 28
Botswana 19 58 100 50
Malawi 19 57 42 52
Mozambiq
ue
8 36 25 47
Namibia 3 30 67 55
South
Africa
58 88 75 90
Zambia 14 33 50 4
Zimbabwe 17 23 25 20

14. PARLIAMENT ‘S ROLE
TOWARDS TRANSPARENCY
IN THE BUDGET PROCESS

15. What is Parliament?
 An elected representative body having supreme
legislative powers within a state
 As the elected body that represents society in all its
diversity, parliaments have a unique responsibility
for reconciling the conflicting interests and
expectations of different groups and communities
through the democratic means of dialogue and
compromise

16. IPU Definition
 “A Parliament is a generic term depicting a
representative body of individuals to whom
the people have entrusted the responsibility
of representing them by laying down the
legal framework within which society shall
be governed and seeing to it that these legal
conditions are implemented in a responsible
manner by the Executive”.

17. Role of Parliament
 Three core functions of Law-Making, Oversight and
Representation. Parliament exercises oversight mainly
through the budget process
 In carrying out these tasks, Parliament works together
with associations of civic society, and has the distinctive
responsibility of safeguarding the individual democratic
rights of citizens
 It can only do all this, if it observes democratic norms, by
showing itself open, accessible and accountable to the
electorate in its mode of operation.

18. Role of Parliament
 If Parliament can play its role in the budget process it can
assert its 3 roles discussed earlier;,
 Parliaments must enact laws that ensure civic participation
in the budget process – Public finance reforms;,
 Aspirations of the electorate must be seen in the budget
eventually approved by Parliament;,
 Monitoring of public expenditure by the legislature -
Oversight

19. Why a participatory budget process
 Participation in budget process powerful tool for
representation and accountability
 Demonstrates importance of strategic engagement
with the State for promoting a people-centric
democratic discourse
 Powerful tool to complement other important
accountability tools such as elections, mass
mobilisation and protests

20. Budget Process
 Emphasis is on meaningful participation by
Parliament in the entire process
 Entire process defined as follows:-
1. Formulation/Crafting of the Budget
2. Debate and Approval in the House
3. Monitoring Implementation/Execution of the
Budget
4. Audit

21. The Budget arena
.
Budget
process
Budget
review and
adoption
Budget
formulation
Budget
execution
External
oversight and
audit
PARLIAMENT
GOVERNME
NT
CIVIL SOCIETY
Legislative
accountabilit
y
Legislative
oversight
Legislati
ve
scrutiny

22. The Budget Cycle

23. Parliamentary Rules and Practices
 Budget brought to Parliament in the form of Appropriation
Bill and Finance Bill
 These money Bills go through the same stages just like any
other bills – 1st Reading, 2nd Reading, Committee Stage and
3rd Reading
 Depending on the Political Governance system –
Parliamentary, Presidential etc – Standing Rules and Orders;,
 Budget amendment powers, time for budget debate;,

24. Tools and Approaches
1. Fuller understanding of parliamentary rules and
procedures governing the budget process
2. Full knowledge of the policy and legal framework
governing the budget process and public finance
management
3. Engagement of parliamentary committees and
influential MPs
4. Building strong coalitions
5. Capacity Building
6. Online parliamentary engagement

25.  The key statutes are the Constitution, Public Finance
Management Act, Finance Acts, and the Audit Office Act
 Budget process calendar, and actors mapped in some of these
legal statutes;
 Independence of Oversight Bodies – Legislature, Supreme
Audit Institutions,
 Legal space availed to non state actors – CSOs, CBOs, etc;,
 Responsibility opening budgets to the public rests with each
government – country contexts – e.g PFM reforms;
Legal and Policy Framework

26. Experiences - Pan African context
 In Uganda, South Africa and Kenya budget policy
statements presented to Parliament at least three
months before tabling of the national budget
 In South Africa, Parliament has amendment powers
on both budget statement and estimates of
expenditure
 In Kenya Act gives budget committee 24 days to
review and analyse the budget and report to
Parliament
 In South Africa it is 16 days

27. Engagement of parliamentary committees
 The key committees are Budget Committee and
Public Accounts Committee
 Other portfolio committees are also important as
they are legally required to scrutinise quarterly
and monthly reports from ministries that they
shadow
 Hearings are a good opportunity for civic and
public input into the crafting of the budget

28. Portfolio committees
 Important to fully understand the portfolio
committee system
 Most of their meetings are open to CSOs and the
public
 Their terms of reference legally empowers them to
summon anyone to appear before them and give
evidence, including the use of public funds
 They can inquire into any policy matters including
the budget that falls within their jurisdiction
 Who has what influence, links and power in the
committee?

29. Building Coalitions
 Strong coalitions are essential to strengthen CSO
advocacy on the budget process
 Develop relationships, partners and alliances
throughout the parliamentary engagement process
 Related to that is engagement of the media. Which
media and on what do we want to engage the media
on?
 Research, analysis and proper packaging of
information, materials and messages

30. Capacity Building
 The key to successful engagement of Parliament on
the budget process lies in addressing serious capacity
gaps within civil society, the Executive and
Parliament itself – Parliamentary Budget Office
(PBO) initiatives –Zimbabwe, Malawi, South
Africa, Zambia, Uganda, Nigeria, Kenya etc
 Organisational, technical and financial challenges
 Above all, political will and an environment
conducive to productive engagement is a pre-
requisite

31. Online Parliamentary Engagement
 Parliament is in the process of establishing a
Parliamentary Budget Office
 This is a technical, independent and professional
unit mandated with assisting MPs process large
volumes of budgetary information
 Will have its own website and interface more with
CSOs and the public
 Use of various social media platforms to engage on
the budget with influential MPs

32. Contacts and Resources:
www.sapst.org

33. CSOs can play a Stronger Role : SAPST
 Not-for-profit organisation established in 2007 to
provide technical and financial support to parliaments in
the SADC region
 Parliamentary Strengthening, both national and
Regional

34. SADCAPBC
 It aims to create a regional platform for Parliamentary
Budget Committees in the SADC region to network and
share knowledge on budgetary best practices, hence
widen scope for their effective involvement and
oversight of the Executive in public resource utilisation.
 The initiative aims for strong parliamentary budget
oversight in the SADC region
 Membership – Angola, Botswana, DR Congo,
Malawi, Mozambique, Namibia, South Africa,
Swaziland, South Africa, Zambia, Zimbabwe.

35. Activities
 Exchange programmes within SADC and beyond
 Establishment of independent parliamentary budget
offices
 Enhance interface between CSOs and Regional
Parliaments
 Review and strengthening of the policy and legal
framework governing the budget process in SADC
parliaments – Focus on a Rights Based approach
 Capacity building – budget monitoring, tracking,
Social Accountability in PFM/ PSAM Rhodes University,
Mainstreaming Climate Change into Budgets,
Mainstreaming Gender into Budgeting.
 Media engagement

36. Conclusion
 Through building Strong parliamentary budget
committees in the SADC region that enforces executive
accountability in the entire budget process from
formulation, approval of budgets in Parliament and
implementation of the approved budgets --- we can
influence the configuration of development policies and
empower MPs with the full Climate Change discourse for
a better SADC.

37. SADC Association of
Parliamentary Budget
Committees (SADCAPBC) as
a resource towards budget
transparency

38. THE END
THANK YOU