© OECD A joint initiative of the OECD and the European Union, principally financed by the EU The Changing Role of Parliament in the Budget Process The Grand National Assembly of Turkey (GNAT) in collaboration with Sigma and MATRA FLEX Afyonkarahisar, Turkey 8-9 October 2008

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU The Parliament and the Budget Enhancing its Capacity for Oversight Prof. Daniel Tarschys

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU ”The Power over the Purse” l Early rulers convened ”grand councils” when they needed new aids and contributions l Meanwhile, they relied on their ”small councils” l Eventually, these two fluid bodies were institutionalised into parliaments and cabinets

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU The Power Balance under Parliamentarism l Parliaments are formally the ultimate decision-makers on money matters l But under parliamentarism, most real decisions are nevertheless made by governments

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU The Stages of Budgeting l requests, l central priority-setting, l legislation, l execution, l auditing l scrutiny.

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Where Does Parliament Come In? l requests, l central priority-setting, l legislation, l execution, l auditing l scrutiny.

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Involvement in the legislative phase Involvement in the legislative phase l US Congress vs UK Parliament l Most countries: very few amendments l Three Models of Budgetary Examination: * single budget committee * specialised committees * mixed solution

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Models for Auditing l Anglo-Saxon Model: Comptroller General l Mediterranean Model: Court of Auditors l N. & E. European Model: Auditing Agency

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Parliament & the Audit Involvement in appointment? Report to parliament? If so, to whom? Public accounts committee, or specialised committees? Extensive treatment in parliament?

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Holding the Executive Accountable Why parliamentary oversight matters: l morale and motivation in the executive branch l confidence and legitimacy l policy learning and policy innovation l social consensus

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Impotent parliaments? No! l Resource matters often decided outside the budgetary process. l The budget is mainly a summary of previous decisions. l Parliamentary discussions affect the parameters for governmental action l The power of questions

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Questions on public expenditures l Questions on disbursements (regularity, legality, eligibility) l Questions on output (effectiveness, efficiency, economy) l Questions about outcomes and impact

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Sources of information Disbursements (regularity, legality, eligibility): AUDITS Output (effectiveness, efficiency, economy): EVALUATION l Questions about outcomes and impact RESEARCH

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Designing procedures for parliamentary scrutiny l Institutional issues: which committees are involved? l Informational issues: on which basis can parliaments raise questions about budgetary performance? Spoon-fed by government, or independent sources? l Procedural issues: how should the proceedings be organised to make an impact?

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Institutional issues l Annual discharge procedures? l Public accounts committees, or specialised committees? l Special rapporteurs?

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Performance budgeting: do parliaments care? l “There is very little direct evidence that performance information in budgets and annual reports is directly used by members of parliament in their oversight” Miekatrien Sterck & Geert Bouckaert 2006

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Analytical resources l Scrutiny of government reports l Staff assistance (in parties, in committees, or in general parliamentary research services) l External resources (modalities for use, hearings, reports).

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Formating parliamentary discussions l From agora to chamber to studio l The new parliamentary balcony is in the living-room l In an age of massive entertainment, will the audience stay tuned?

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Setting the stage for parliamentary oversight l Architecture l Scenography l Dramaturgy

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Parliamentary cooperation l Inter-parliamentary Union l Parliamentary Assemblies l COSAC l Association of Secretaries General of Parliaments (ASGP) l International Political Science Association: research group on legislative studies