Open Budget Initiative 2006 Slovenia dr. Mitja Čok

2 Open Budget Initiative 2006  International Budget Project was established in 1997 as part of the “Center on Budget and Policy Priorities” - Washington DC  It is non-partisan, non-profit research organization  Its aim is to support civil society organizations interested in strengthening public budget processes, institutions and outcomes

3 Open Budget Questionnaire  Captures the transparency of budget process  Does not evaluate the quality or credibility of information on budget expenditure, which are publicly available  Does not evaluate the quality or credibility of macroeconomic forecasting, expenditure forecasting, etc.  Final answers are reviewed by two independent experts  It contains 122 questions

4 Open Budget Questionnaire Open Budget Index is derived of the responses to 91 of the questions, which evaluate : –The appropriateness of the information for policy analysis –Comprehensiveness of the information provided –The timeliness of the documents regarding the seven key budget documents: 1.Executive’s Budget Proposal (predlog proračuna) 2.Citizen Budget (proračunska zgibanka) 3.Pre-Budget Statement (proračunski memorandum) 4.In-Year Reports (mesečna, trimesečna poročila) 5.Mid-Year Reports (polletna poročila) 6.Year-End Report (zaključni račun proračuna) 7.Auditor’s Report (revizijsko poročilo)

5 Open Budget Questionnaire  In this cycle ( ) 59 countries were involved  The next one is planned for 80 countries (in 2008)

6 Section one: The Availability of Budget Documents 1.1. List of Budget Documents Used in Completing the Questionnaire 1.2. Internet Links for Key Budget Document 1.3. Distribution of Documents Related to the Executive’s Budget Proposal 1.4. Distribution of the Enacted Budget and Other Reports

7 Section Two: The Executive’s Budget Proposal 2.1. Estimates for the Budget Year and Beyond -Estimates of expenditures/revenues - yes -Availability of data on interest and public debt - yes (Budget Memorandum) -Macroeconomic forecasts - different scenarios only for internal use -Estimates how changes in policy affect expenditures - not part of the budget documentation 2.2. Estimates for Years Prior to the Budget Year -Estimates of expenditures/revenues - yes (Budget Memorandum) and Bulletin of Government Finance -Is Bulletin of Government Finance supporting budget document? -Detailed presentation of tax/non-tax revenue

8 Section Two: The Executive’s Budget Proposal 2.3. Comprehensiveness -Intergovernmental transfers - yes -Information on financial/non-financial assets - not part of budget documentation -Loan guarantees - not part of budget documentation -Donor assistance - only from the EU -No information on tax expenditure -Quasi-fiscal activities - not part of budget documentation 2.4. The Budget Narrative & Performance Monitoring -Link between the budget and government’s stated policy goals - yes, sometimes very general -performance indicators - much to be done 2.5. Additional Key Information for Budget Analysis & Monitoring -Tax laws availability - yes, distribution of tax burden available internally -Budget availability - yes -Citizen Budget, glossary, budget process summary - no

9 Section Three: The Budget Process 3.1. Executive’s Formulation of the Budget -Consultation with the parliament regarding budget priorities - no, after the budget proposal is prepared -Consultation with the public - no 3.2. Legislative Approval of the Budget -Timetable -“Public hearings” in parliament – yes, ministries defend individual budgets/press can attend -Time when the budget proposal is release to the public - ok -Authority to amend – yes, not increasing the budget deficit 3.3. Executive’s Implementation of the Budget -In-year report - yes, Bulletin of Government Finance (monthly) -Mid-year report - yes (January - June) -Procurement of goods and services - open, but examples of irregularities -Supplemental budget - before funds are expended / after in the case of contingency funds

10 Section Three: The Budget Process 3.4. Year End Report and the Supreme Audit Institution -Year-end report is submitted to the SAI -Year-end report explains the difference between enacted levels and actual outcomes

11 Open Budget Index: Overall

12 Open Budget Index: Executive’s Budget Proposal

13 Open Budget Index: Pre-Budget Statement

14 Open Budget Index: In-Year Reports on Execution

15 Open Budget Index: Mid-Year Review

16 Open Budget Index: Year-End Report

17 Open Budget Index: Auditor’s Report

18 The History of Budget Process in Slovenia -1991: budget included the elements of a law -Mid 1990’s: Budget Implementation Act New Public Finance Act -MFERAC – control over the budget implementation and unified accounting (1998) -Economic Classification (GFS, 1999) -Functional Classification (COFOG, 2000) -Program Classification (2000) -Institutional Classification (2000) -Two-year budget (2001) -“Top down” approach for budget preparation (2002) -APPrA – application for budget preparation (2002) -SAPPra – web application for preparing financial plans (of individual ministries) (2003)

19 Summary -Slovenia is well positioned -In several cases a document is available to the public but not regarded as “budget document” according to the Questionnaire (Bulletin of Government Finance, Data on Government Debt and Guaranties) -There is no Citizen Budget -Performance indicators - much to be done