1. Public Participation in Fiscal Policies
Standards, Tools & International experience
Public Expenditure Management Peer-Assisted Learning 
Working Group on Budget Literacy & Transparency
Juan Pablo Guerrero
October 27, 2017 
#FiscalTransparency

2. Contents
Public Participation in Fiscal Transparency Codes and Standards
GIFT work on the matter: Guide with Principles and Cases
New cases, new experiences
Possible takeaways for PEMPAL 2

3. Public Participation in FT International Codes and Standards
2012: GIFT H-L Principles on FTAP
2012: IBP-OBS leads the way, w/ section on PP
2014: IMF revision of Fiscal Transparency Code
2015: OECD Principles on Budgetary Governance
2015: Tax Adm. Diagnostic Assessment T.-TADAT 
2015: Open Contracting Partnership
2016: Revised PEFA Indicator Program
2016: Extractive Industries Transparency Initiative 2017: New PP section in OBS-IBP
2017: OECD Budget Transparency Toolkit
2017: PEMPAL is first practitioner network to engage systematically on the matter 3

4. Participation in Fiscal Policy and the Budget Process –
How to establish and/or strengthen mechanisms (PEMPAL)?
CONGRATULATIONS: Excellent background paper
A few important lessons:
PP is mainly to benefit the people & improving impact of use of public resources
PP seeks feedback for improvements & needs to include relevant & diverse inputs (inclusiveness)
PP complements existing agencies/institutions - Key words: partnerships, alliances, collaboration, cooperation, engagements
Game changer: Information Technologies 4

6. Bottom Up Budgeting in the Philippines
Launched in 2012 with 515 communities and small budget
Primary objective: deliver basic social services to the poor, reduce the influence of local elites and empower the citizenry
Local poverty reduction action team (LPRAT) determines local priority projects
A general assembly is established: 50% members are from government and 50% from CSOs
The Assembly recommends projects to the LPRAT
Suggested projects are submitted for incorporation in the budget of the participating national agencies
CSOs can engage in the monitoring of the BuB projects
In 2016: BuB included 1,514 cities and municipalities and a budget 3 times bigger than in 2012
BASIC FACTS
Executive Branch Lead
Formulation& Implementation budget stage
Local & National level
Principles of Complementarity, Depth, Inclusiveness, Openness, Reciprocity, Respect for self-expression, Sustainability &Timeliness 6

7. Education Reform Program in Mexico
BASIC FACTS
Executive Branch Lead
Enactment & Formulation budget stage
National level
Principles of Accessibility, Complementarity, Depth, Inclusiveness, Openness, Reciprocity, Respect for self-expression, Sustainability, Timeliness
Launched in , aiming to improve the infrastructure and equipment of the most vulnerable basic schools throughout Mexico
Parents, teachers and directors form a committee and decide how to prioritize federal funds that have been allocated for their schools
Public engagement takes place at all stages of the process, from allocation of resources, to implementation and monitoring
Interactive website allows users to monitor project status
The program has benefited over 20,138 schools and has been renewed for 2016 7

8. Expert and CSO pre-budget consultations in Croatia
BASIC FACTS
Legislative Branch Lead
Formulation budget stage
National level
Principles of Openness, Accessibility, Depth, Reciprocity & Complementarity
Launched in 2011; it aims to consider the public’s opinion on macro-economic forecasts, budgetary priorities, and controversial projects
Vessel for public participation: Commission on Fiscal Policy, an independent body situated in Parliament
The Commission on Fiscal Policy consists of members of various institutions (Supreme Audit Institution, Institute of Economics, Institute of Public Finance, Croatian National Bank, academics) and holds public hearings with expert witnesses. On each bill that comes before the Commission, members can provide suggestions.
In 2014, the Commission issued five opinions on various budget documents. 8

9. Pre-budget Consultations through the House of
Commons Standing Committee of Finance In Canada
BASIC FACTS
Legislative Branch Lead
Formulation budget stage
National level
Principles of Openness, Respect for self-expression, Depth, Timeliness, Inclusiveness, Complementary, Proportionality & Sustainability
Although established earlier, mandate for public consultations on the budget started in 1994
Provides a way for Parliament to evaluate government policy
Adds quality and legitimacy to the budget process
The Finance Committee receives witness testimony and online submissions
An annual public report is drafted, highlighting recommendations tied to the consultation Finance Committee received witness testimony from more than 100 people and groups and more than 400 online submissions
The 2014 Finance exercise
In 2014, the Committee Report contained 47 recommendations in six priority themes identified by the Committee 9

10. Philippines Citizen Participatory Audit
BASIC FACTS
Supreme Audit Institution Lead
Audit budget stage
National level
Principles of Openness, Inclusiveness, Transparency, Sustainability, Complementarity & Reciprocity
Launched in 2012, a value-for-money or performance audit conducted by the Commission on Audit (COA), with the participation of individuals selected from CSOs as members of the audit team.
Special audit teams with COA and citizen auditors are created
When citizen auditors are “deputized” as COA auditors, they:
Are given formal roles and responsibilities and are present in all steps of the audit
Receive the same level of access to information and documents related to the audit as any other member of the audit team
Joint audits brings citizens from non-government groups into the formal audit process, giving COA a chance to explore complementary and additional approaches to audit (e.g., community scorecards) 10

11. Social Audit in Andhra Pradesh, India
BASIC FACTS
Non-State Lead
Audit budget stage
Regional level
Principles of Openness, Transparency, Sustainability, Inclusiveness & Respect for self-Expression
Started in 2006, the Rural Development Department of Andhra Pradesh engages non-state actors to determine whether state reported expenditures reflect the actual resources spent on the ground
After verification is complete, auditors organize a village assembly where audit findings are shared; local politicians, elected members and local officials, and field assistants participate
Discussions and debates on the state of program or policy implementation are catalyzed
Presence of civil society ensures high degree of autonomy and objectivity
State government has provided full financial and operational support
Social audit is conducted by community volunteers
More than 200,000 social auditors have been trained
On average, social audits are conducted each month across all 22 districts, with not less than 2000 people engaged in the exercise 11

12. Public Policy Councils in Brazil
Permanent collegiate bodies creating, implementing, and monitoring public policies
Operate at all three levels of government (federal, state, municipal), in various thematic areas
Membership is based on parity (government and CSOs)
Councils must approve the budget in their policy area
In 2012 municipals councils in health, social care, and rights of children fully operational in 99% of municipalities.
75% of national council members consider they have a significant impact on policy.
Number of councils grown exponentially over the past 20 years.
BASIC FACTS
Executive Branch Lead
Formulation budget stage
Local/ Regional/National level
Principles of Complementarity, Depth, Proportionality, Reciprocity, Respect for self-expression, Sustainability &Timeliness 12

13. Top-Down Budgeting System in South Korea
Adopted in 2004 to encourage innovations in budget allocation at each ministry within sectoral ceilings
Two-step process:
Central budget agency sets sector ceilings
Line ministries allocate the budget within those ceilings
At each step, an Advisory Committee, consisting of CSO and expert members, is consulted
Budget programs are evaluated every 3 years, with the involvement of the Advisory Committee
The Committee can provide oral and written suggestions and can vote for or veto proposals
Considered to have resulted in shift to a more welfare-oriented budget
Reforms gained further legal support from the National Fiscal Act of 2006
BASIC FACTS
Executive Branch Lead
Formulation budget stage
National level
Principles of Openness, Complementarity & Depth 13

14. Social Audits in Kenya
In 2005, a CSO, Muslims for Human Rights (MUHURI), started monitoring expenditures under the Constituency Development Fund (each MP is provided with $1 million a year to support development projects in his or her constituency.)
Gaining access to detailed CDF records was a challenge -- Lack of FOIA, at the time, limited conducting social audits
Two social audits in Changamwe (2007) and in Bahari (2008)., involving site visits to all projects, interviews with local residents
Concrete problems were discovered as a result of the social audit with the implementation of a number of projects
In Changamwe, results were announced through a day-long public hearing, attended by 1,500 residents, local CDF officials, and media. MP joined the hearing himself and signed a petition demanding greater transparency and accountability measures to be included in the CDF Act
MP got re-elected, in large part, due to his openness to the social audit
The 2015 Act introduced a Constituency Oversight Committee at the constituency level to oversee projects and to receive feedback from members of the public during forums convened for that purpose.
BASIC FACTS
Non-State Lead (with involvement of Legislature)
Audit budget stage
National level
Principles of Self-expression, Transparency, Sustainability & Complementarity

15. Citizen Participation in the Audit Process in Argentina
The General Audit Office (AGN) launched in 2003 the Annual Participatory Planning Meetings
CSOs make proposals on institutions and programs to be audited for possible inclusion in the AGN’s Annual Work Plan
Meetings are well attended from the civil society side; for example, during the 2017 meeting, 38 proposals were received by AGN on various topics
Thematic Workshops started in 2013
AGN disseminates the findings and recommendations of audit reports & generates ownership of audit results by CSOs that can monitor and demand for compliance of recommendations
In 2005 the degree of pollution of the Matanza-Riachuelo Basin was audited, after a request by a neighborhood association. Based on audit report, in 2008, the Supreme Court of Justice summoned defendants to present a plan to clean up the watershed and companies to report on precautions taken to stop pollution of the area
BASIC FACTS
Supreme Audit Institution Lead
Audit budget stage
National level
Principles of Complementarity, Depth, Openness, Respect for self-expression, Sustainability, Timeliness

16. Participatory Budgeting in Germany
The typical participatory budget in Germany is consultative
Usually makes use of an online platform and promotes accountability by providing information on how citizen proposals and inputs were considered
In big cities like Berlin, participants discuss projects, and also prioritize through a voting system
3 phases:
Information- citizens receive information about the budget and about the participatory budgeting procedure, mainly through online means
Participation and consultation – citizens contribute their ideas, make proposals and provide feedback on existing proposals, which are discussed in online forums or at public meetings. A prioritized list of proposals results. Decisions are taken by the council
Accountability--decision-makers and administrators provide information on the outcome of participation, and explain and justify their decisions; an accountability report is usually published.
Research shows that in 435 local PB: 69 % provide space for discussion on the entire budget; 79 % allow both cost-saving and expenditure-increasing proposals; 75 % of are proposal-based, i.e various budget-related proposals are discussed
BASIC FACTS
Executive Branch Lead
Formulation budget stage
Local level
Principles of openness, inclusiveness, respect of self-expression, timeliness, depth, sustainability, and complementarity.

17. GIFT Public Participation in Fiscal Policy Awardees 2017
Cascais Participatory Budgeting in Portugal:
Implemented by the Municipality of Cascais in Portugal, for 6 consecutive years, involving more than citizens, implementing 88 projects (works) worth € and has strengthened people's confidence in government
Their methodology has been replicated in more than 10 cities and observed by different countries
Farm Subsidies in Mexico:
Public participation to improve the situation of small farmers in Mexico, executed by the CSO Fundar, a peasant organization, and a group of academics and technical experts
Used Mexico‘s FOIA to obtain official data on the recipients of agricultural subsidies
Analyzed data is disseminated through a user-friendly website ( and identified a disproportionate and inequitable, concentration of subsidy recipients in the wealthiest 10 % of farmers
Advocacy supported by this evidence contributed to reforms in the subsidy programs.
Budget Monitor in Georgia:
Recently implemented by the State Audit Office of Georgia
Offers a unique analytical web-platform with comprehensive information about public finances, designed from an auditor’s perspective via different data visualization tools, such as interactive and user-friendly diagrams, info-graphics and tables.
Engages the public throughout the audit cycle: citizens can send audit requests, suggestions, and proposals, inform the SAOG about the deficiencies in the PFM system, and suggest the priority spheres for future audit(s).

18. 1. Takeaways: Public Participation mechanisms across the budget cycle
Consultation on Budget Policy Statement, and annual budget proposal
Submissions on money Bills
Independent Fiscal Institutions
Citizen complaint mechanisms
Citizen feedback on public services
Citizen monitoring - procurement
Citizen engagement w/ management of individual service delivery units
Consultations on national planning
Consultations on annual budget
Tax policy and expenditure policy reviews and consultations
Public engagement on public service needs, and on investment project appraisals
SAI engagement on audit planning, and conduct of audits
Legislative consultation on departmental reviews
Social audits of revenues and expenditures
Audit and oversight
Executive Budget Preparation
Legislative
approval
Budget Implementation

19. 2. Takeaways for PEMPAL Dialogue with users for :
Producing Citizen Budgets
Improving the level of detail of published information
(facility-level information / sector-specific information)
Publishing data in machine-readable formats;
Publishing Information on investment projects
and off-budget spending (pensions)
Allowing for cross-referencing different types of data
(budget allocations and contracts)
Increasing dissemination efforts: dedicated FT portals 19

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