1. Public Participation in Fiscal Policies
Standards, Tools & International experience
Event
Juan Pablo Guerrero
Date
#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
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. Participatory Budgeting in Wuppertal, Germany
Started as a pilot project in 2016, with the key goal of providing new means of participating in and learning about municipal budget decisions, with a focus on the integration of formats both on-site and online, and amplify the scope for change due to citizens’ proposals
In close cooperation with the recently established Wuppertal department for participation under the responsibility of the mayor and the treasurer
The online platform developed in the EMPATIA EU project was adapted and used to act as a kind of show window for the financial department of the municipality, channeling all aspects of information and participation regarding the municipal budget into one platform. As such,  a platform for both transparency and participation
Clear scope of participation, including a defined financial scope of €, a sum that may sound small compared to PBs in other countries but that is already in itself a success knowing that there is very little experience in Germany with actual citizen budgets that citizen can decide over.
Also used for sparking interest in municipal budget decisions beyond the Euro, enabling citizens to understand how a budget works, how municipal staff and political representatives work, and how to deal with the challenge of limited resources
BASIC FACTS
Executive Lead
Formulation budget stage
Local level
Principles of accessibility, openness, depth, respect for self-expression, timeliness, reciprocity, complementarity sustainability

18. Cascais Participatory Budgeting in Portugal
The Municipality of Cascais has implemented Participatory Budgeting for 6 consecutive years
More than citizens have been involved, implementing 88 projects (works) worth € and has strengthened people's confidence in government
The Cascais PB methodology has two cycles: decision and implementation
Four phases of the decision cycle: 1) preparation of the procedure; 2) Reception of proposals in round tables; 3) technical analysis by multiservice teams; 4) online/ mobile voting based on a final list
Winning projects are announced and the rest are saved in a project bank
Implementation cycle happens along the lines of the execution of public works: at the preparation of preliminary studies, the authors of the proposals are included to understand the different perspectives on the intervention and to seek the points of balance and consensus
Annual evaluation sessions have led to upgrades in the PB standards. These changes result from previous mistakes found each year. The evaluation method includes politicians, technicians, citizens and consultants
The methodology has been replicated in more than 10 cities and observed by different countries
BASIC FACTS
Executive Branch Lead
Formulation & implementation budget stage
Local level
Principles of accessibility, openness, inclusiveness, respect of self-expression, timeliness, depth, proportionality, sustainability, and complementarity.

19. Farm Subsidies in Mexico
Public participation to improve the situation of small farmers in Mexico, executed by a coalition made by the CSO Fundar, a peasant organization, and a group of academics and technical experts
The coalition 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
Subsidios al Campo has shown that there is considerable investment in the rural areas, with meager results in overcoming inequality. The Ministry of Agriculture reacted by initiating a cleanup of the recipient list and modifying the policy‘s operating rules
The effects of the campaign did not end with increased public awareness. The stories about concentration helped efforts to establish maximum and minimum limits for farm subsidies
BASIC FACTS
Non-State Lead
Formulation, implementation and audit budget stage
National level
Principles of accessibility, openness, inclusiveness, respect of self-expression, and depth

20. Budget Monitor in Georgia
Recently implemented by the State Audit Office of Georgia
Budget Monitor 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)
The SAOG uses a risk-based model to manage citizens’ requests and follows the BM’s operational manual, which discusses every step of the process in detail. Furthermore, it defines responsibilities in the SAOG, and timeframe and procedures for every step
Each request made by citizens is given a unique code that enables the requester to check whether the request is rejected or accepted, based on established criteria
The relevant audit department is responsible to further proceed with the request. During the process, the requester is able to monitor the status of the request.
The BM also gives citizens the opportunity to vote for priority spheres, the latter is also taken into consideration while planning for the next year
Finally, citizens are informed via the BM, (i) when the request-based audits are initiated and (ii) when the audits are finalized
BASIC FACTS
Supreme Audit Institution Lead
Audit budget stage
Local, regional and national levels
Principles of accessibility, openness, inclusiveness, depth, proportionality, sustainability, complementarity, reciprocity

21. Participatory planning in Butwal municipality in Nepal
1990s- parliamentary democracy is reintroduced, and decentralization reforms were implemented, creating new participatory mechanisms to institutionalize local level participatory decision-making
Participatory planning integrates new and old forms of participatory practices to directly engage citizens in various aspects of local governance, including formulating annual budgets and programs, implementation of such programs and in some cases involving citizens in monitoring and evaluation committees in municipalities
The planning process has three distinct yet interrelated activities (each has its own organizational structure, operational procedures and specific objective to contribute to planning, and implications for the fiscal policy cycle): formulation, enactment and implementation
Municipalities lead the planning process. The structure of municipal governance in which the planning was operationalized includes two different sets of institutions: the municipality and its sub-municipal entities, and the community-based organizations--the Tole Lane Organizations and Ward Citizens Forums
In the planning process: a) appointed officials play key roles in steering the process by, for example, setting up general procedural guidelines to be adopted and allocating the budget ceiling for wards; and b) civil society organizations play key roles in deliberating their most pressing social and developmental issues on the other.
Thus, the participatory planning process includes two aspects of institutional changes: steering which institutionalizes planning as a top-down process; and deliberating which can be analyzed as a bottom-up process
BASIC FACTS
Executive Lead
Formulation, enactment, and implementation budget stages
Local level
Principles of openness, timeliness, and sustainability

22. Open Budget Session: Public Consultation in the Local Budget Process in Bangladesh
Union Parishads (UP), the lowest level of the local government, are obliged to prepare and present their budgets to local people in an “open budget session”
The purpose of the open budget session is to discuss and debate the Union Parishad budget during Ward Sabha (citizen gathering), to ensure the accountability of local government through citizen centric validation of schemes and development agendas through citizen’s voices. (Ward Sabha is a citizen gathering, constituted of all individuals enlisted in the voter list of a ward)
The annual income and expenditure statements of the Union Parishad are generally presented at this open budget meeting along with the succeeding year’s income and expenditure plan
The respective UP chairman announces the budget of the UP in front of local people. People can raise questions, queries and make comments on any of the issues of the proposed budget and plan
BASIC FACTS
Executive Lead
Formulation budget stage
Local level
Principles of respect for self-expression and inclusiveness; others like openness, sustainability and complementarity could be improved

23. Citizen visible audits in Colombia
The constitution mandates mining royalties to be transferred to sub-national governments and allocated to public works in areas such as education, health, nutrition, and water
To prevent corrupt practices in the use of royalties, the Colombian Anti-Corruption Presidential Commission launched in 2008 the Citizen Visible Audits (CVA) program to promote transparency of royalty funds and citizen participation in the management of public investments, through a series of community forums, referred as auditorías visibles
Since 2012, the CVA program is a central piece of the Colombian Government’s Open Government Partnership
These forums, where detailed information about the planning, budgeting, and the progress of public works is provided, bring together authorities (a team of experts from the Royalties Directorate specialized in citizen’s participation, public investments and procurement regulations who chair the hearings , local communities, and representatives from the implementing firm with the aim of generating an open and consultative space where they all can meet, discuss, and agree on the correct completion of the projects
Disseminating information through radio, newspapers, invitations and local TV about the CVA program in the neighborhoods where the project takes place is an important component
Before making the final payment to the executing firm, the finalized project is presented to the community. The audit results are shared with all interested and concerned stake-holders
BASIC FACTS
Executive Lead
Implementation budget stage
Local level
Principles of openness, sustainability, inclusiveness, and respect for self-expression

24. Open Budget Workshops in Guatemala
The Open Budget –presupuestoabierto.gt– is a tool developed by Red Ciudadana (Citizen Network) in support of the Ministry of Finance for the fulfillment of the commitment of Open and Participative Budget of Open Government
This is an electronic platform that was used during the budget presentation period 2016, for each public institution to preset and justify its budget project and how they would use the funds. For presentations (produced by each Institution to display each item in detail), people could tune in the live presentation, and allowed users to comment via Facebook
The objectives of this project were to contribute to making public the national budget and how each institution planned to invest the resources. It was definitely a key tool, since, although the presentation was made in a public building, there was an attendance limit. This platform allowed thousands of Guatemalans to observe the process and comment on it
This marked a milestone, as it would represent the first pillar (which would be given subsequent continuation) of control, because it allows citizens to know how each institution plans to invest their tax money
BASIC FACTS
Executive Lead
Formulation budget stage
National level
Principles of openness and timeliness

25. 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

26. 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 26

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