The road to budget transparency in Mexico Carlos Brown Solà Fundar, Centre of Analysis and Research Brasilia, June 27th, 2018

What were the key factors driving government behaviour to improve budget transparency? What was the role of civil society organisations in Mexico’s improvement on budget transparency? What are the limits of budget transparency and what is needed in order to ensure substantive policy changes? Key questions

Mexico’s position in the Open Budget Index 2006 - 2017 Extensive Substantial Limited Minimal Scant / None Mexico’s position in the Open Budget Index 2006 - 2017

Political and legal framework Transition to a functional democracy after a one-party hegemony that created a semi-authoritarian system. TAP Triad: transparency, accountability and participation 2001, Oaxaca Group: first process to incorporate the participation of civil society Enactment of four laws that had a direct impact on the budget information published: 2002. Federal Law of Transparency and Access to Information; 2006. Federal Law of Budget and Treasury Responsibility; 2008. General Law on Government Accounting; 2009. Federal Law on Audit and Accountability. Political and legal framework

The role of institutions Federal Institute of Access to Information (IFAI)  INAI, 2014 Autonomous agency responsible for implementing the policy of openness and guarantying the right to information. Facilitated a community of practice around openness and access to information. Strengthening of the Supreme Audit of the Federation Monitor federal resources exercised by non federal entities. MoF’s Performance Evaluation Unit New way of budgeting, based on results. Need for indicators for budgetary programs  Necessary data to calculate them. The role of institutions

4 types of changes in the process Political Ongoing transition to a democratic regime Institutional Laws and agencies were created Communicational Greater press coverage and discussions thanks to openness of regime Behavioural From confrontation to collaboration 4 types of changes in the process

Usefulness to government of such publicly available budget information for making difficult policy decisions (e.g. 2008-2009 financial crisis) Changes in the communication area: journalism + new government focus + changed strategies from SCO (confrontation  collaboration) Pressure for more information from an increasingly professional community of practice Influence from abroad, both from civil society and from international financial institutions Specific characteristics of the Mexican budget officials inherited from years of one-party rule Drivers of change 1 2 3 4 5

Publishing the information Two main processes that ended up in the publication of more budget information: Enactment of four laws previously enlisted, Citizens Budget (2010) and the Budget Transparency Portal. Budget Transparency portal (BTP): Not easy: Development and launch took more than two years. Importance of the ‘Spend Better Collective’. Support of high-level allies at the MoF. Continuity ensured on this federal administration by: Steadiness of all officials at the MoF’s Performance Evaluation Unit, Inclusion of a budget transparency indicator in this administration’s program. 2016, first two Application Programming Interfaces (API) released. Publishing the information

What’s missing? Next steps Promote public participation in the process of elaboration and approval of the budget. Create a fiscal council within the legislative branch aimed at improving checks and balances. More transparency on specific budget allocation, trusts and MoF processes, beyond detailed requests for files. “Follow the money”. Build a stronger community of practice outside public finances expertise. Develop participative budgeting at a federal level. Advance subnational budget transparency. More tax transparency: the ‘More Open SAT’ Programme experience. What’s missing? Next steps

Carlos Brown Solà Fiscal justice program coordinator Fundar, Centre of Analysis and Research carlosb@fundar.org.mx