GIFT Webinar November 7, 2018 Communicating the budget. How to promote the use of budget information. Case of the Russian Federation Anna A. Belenchuk Division Chief, Budget Analysis and development Department of budget methodology and public sector financial reporting Ministry of finance of the Russian federation

Such an approach would: Building a multi-dimensional framework for budget data transparency in Russia Budget literacy Transparency of key budget documents across all budget levels Public engagement in the budget process (participatory budgeting, community marketplace of ideas). Budget data Such an approach would: Enable budget data transparency across all budget levels of the Russian Federation Enhance public engagement in the budget process Leverage new tools enabling the public to provide feedback on budget issues

Budget Information Management Flow Building citizens’ skills to use budget information: PB development program in Russian regions Monitoring PB practices Promoting best PB practices across regions and municipalities Citizen engagement III. Teaching citizens to understand budget information: Enhance budget literacy of PB stakeholders (inputs for target groups) - Teaching materials on budget literacy for high-school students Integrating budget literacy elements into financial literacy Annual competitions of ideas for the Citizens’ Budget II. Budget literacy Design requirements, standards and methodology for open budgets across all tiers of the budget framework of the Russian Federation: - Promote open budget data of the Russian Federation building on international requirements and domestic experience Measure budget data transparency Design an open budget data methodology for Russian regions Collect and disseminate best open budget practice I. Data transparency

MOF’s Citizen’s Budget Project: Areas Review international standards on budget management openness, design and implement special tools following best international practice. Design a methodology and monitor the transparency of budget data at the regional level of the Russian Federation. Develop options for engaging citizens in the budget process at the local level based on participatory (initiative) budgeting practice. Develop actions to enhance citizens’ budget literacy. Organize competitions of ideas for Citizen’s Budgets. Prepare and publish annual reports on best regional and municipal practice across the sections of the project (Citizen’s Budget, participatory budgeting, etc.).

Progress in Promoting PB *  Indicator 2015 2016 2017 2018 1. Number of regions engaged in Participatory Budgeting practices 7 16 47 51 2. Regional subsidies to implement PB programs, Rub in billions 1.4 5.1 7.7 n/a 3. Federal budget expenditures, Rub in billions - 38 4. Community and business co-financing, Rub in billions 0.4 0.7 11 5. Total cost of the projects, Rub in billions 2.4 7.0 14.5 6. Number of projects implemented 2 657 8 732 15 942 * - official responses of regional executive authorities to a MOF poll about PB practices in the year; ** - includes funding for priority project of the Ministry of Construction and HSU Shaping a Livable Urban Environment and Federal Targeted Program Sustainable Development of Rural Territories in 2014 – 2017 and to 2020 of the Ministry of Agricole of Russia.

Classification of Citizen Engagement Practices in the RF Criterion 1. World Bank’s LISP 2. People’s Initiative, People’s Budget 3. EUSPb Participatory Budgeting (EUSPb PB) 4. Priority project Shaping a Livable Urban Environment Launch 2007 2011 2013 2017 Key Characteristics Citizens select projects at community meetings Projects are competitively selected based on formal criteria 3. Integration into national administrative, budget and legal systems 4. Projects are financed from regional budgets with mandatory financing from local communities, businesses and municipalities Regional variations of PB practices and are a summary of various PB approaches Allocation of earmarked municipal funds or borrowed funds based on decisions of a commission of randomly selected members from among the project applicants and municipal representatives. The commission may propose initiatives across all areas of urban life. Federal budget subsidies of nearly Rub 25 bn are disbursed to regional budgets to support regional and municipal projects to shape a modern urban environment. The Government adopted rules for disbursement and allocation of subsidies. “Participatory design” methodology. Regional Coverage Kirov, Tver, Nizhniy Novgorod oblasts, Stavropol, Khabarovsk krai, Republic of Bashkortostan, Northern Ossetia, Jewish Autonomous Region, and others Tula, Irkutsk and Tambov oblasts 13 towns and settlements in Leningrad, Kirov oblasts, a PB project was launched in St. Petersburg in 20116 72 regions of the RF

PB: Key Development Stages in the Russian Federation 2015 2016 2017 2018 A PB Center established in MOF’s Finance Research Institute Launch of the World Bank’s Project to Promote Participatory Budgeting in the Russian Federation A medium-term PB development program in the Russian Federation is drafted PB is incorporated in the MOF’s Public Finance Management and Financial Market Regulation Program

Budget Literacy for High School Students Project Budget literacy is the ability to read, decipher, and understand budget information Objective: to enhance budget literacy, promote responsible citizenship by explaining the objectives and functions of the national budget, and rights and obligations vis-à-vis the budget. The Russian project is a unique and one-of-a-kind case that could serve as a example for other countries. The teaching materials could be used both as a stand-alone curriculum and for teaching participatory budgeting, as well as for financial literacy courses.

Road Map to Integrate Budget Literacy (BL) and participatory budgeting (PB) Practices (core) Actions Objective Implementation 2018 2019 2020 1. Review international practice in information and awareness-building and collaboration between government across different levels and adult population Identify best strategies of information collaboration Х 2. Create samples of various teaching materials (brochures, booklets, calendars) on budget literacy basics for adults, and regional and local government authorities Design visual and textual materials based on best Russian and international practice 3. Design methiodal recommendations to integrate PB and BL, inter alia, operational guidelines on implementing youth and school PB practices Prepare step-by-step guidelines on implementing youth PB for municipal and regional stakeholders youth councils, and school principals 4. Design a FAQ brochure on the budget and budget processes providing clear answers and explanations Identify the most relevant questions on the budget process and prepare responses to them 5. Facilitate the organization of Budget Literacy Days across the regions with a focus on ways of engaging citizens in the budget process at the local level Shift the focus in BL towards citizen engagement in the budget process 6. Design a single data resource (website) on PB and BL for citizens Create an page informing target audiences about youth and school PB practices 7. Conduct trainings and webinars Exchange ideas and transfer knowledge

Thank you!