1. PEMPAL meeting, Day 2 Budget Literacy and Transparency Working Group
The Open Budget Survey What has changed and how will public participation be assessed?
Elena Mondo, April 13, 2016

2. Presentation Outline Overview of the 2017 Open Budget Survey schedule
Key milestones
Where does governments input/collaboration comes in?
What has changed in this new round of the Survey?
Coverage
Methodology
Structure
Special focus on the changes in the Public Participation section

3. 2017 Open Budget Survey: Schedule
MILESTONE IN THE 2017 OBS SURVEY PROCESS
WHEN WILL IT HAPPEN?
Cut-off date for accepting documents for OBS 2017
31 December 2016
OBI team reviews the OBS draft questionnaires
1 Jan to 28 Feb 2017
Governments and Peer Reviewers complete+ submit review
1 March to 30 April 2017
OBI team referees questionnaires
1 May to 30 June 2017
Database is finalized and analyzed [embargoed]
1 June to 31 July 2017
Report writing and drafting/finalizing all material
1 Aug to 31 Oct 2017
Translation and printing of the material [embargoed]
1-30 November 2017
Formal international launch of the 2017 OBS results
Mid-December 2017
National, regional and international events (Governments welcome to co-host or simply attend)
Throughout 2018

4. What is new in the 2017 OBS? Coverage:
Increased, from 102 to 115 countries (Australia, Burundi, Canada, Comoros, Cote d’Ivoire, Japan, Lesotho, Madagascar, Moldova, Paraguay, Somalia, South Sudan, Swaziland).
Methodology:
Change in assessment of “public availability” of key budget documents: online requirement, i.e., OBS 2017 (and future Surveys) will consider “publicly available” only documents that are published on an official government site
Structure:
- Broadly unchanged (still 5 sections, three of which on budget docs)
- Individual indicators on oversight and participation were added or revised, to reflect the importance of all 3 pillars of accountability
- Different angle for assessing oversight: from “strength of oversight” to “role and effectiveness of formal oversight institutions”

5. A closer look at the Oversight indicators Section 4 of the OBS
New indicators have been included to evaluate the role of the Independent Fiscal Institutions
Additional indicators on the interaction between institutions (Parliament, in plenary and finance/sectoral committees, Supreme Audit Institutions, IFIs)
Clearer wording around questions and response options
Kept focus on both legal requirements and what happens in practice
Stronger questions on the extent to which Parliament is consulted during budget formulation and implementation (e.g., when additional resources become available, or shifts between budget lines are required)
22 indicators are included in this section (10 identical, 11 new, 5 dropped, 1 modified from 2015)

6. Special focus: Public Participation in National Budgeting
The Open Budget Survey should help highlight the importance of all three pillars of a well-functioning accountability ecosystem: budget transparency, public participation, and the effectiveness of oversight institutions.
Why? Access to budget information is a necessary but insufficient condition to increase the level of accountability for governments to raise and spend public funds efficiently and effectively
For this to happen, transparency must be accompanied by meaningful opportunities for the public to participate in the budget process
For this reason, over the last six years, IBP has introduced and refined a set of indicators on public participation for the Open Budget Survey (OBS) that could complement existing indicators on transparency

7. OBS Indicators on Public Participation
What we used to do: OBS 2012/2015
Indicators on public participation in the national budget process were introduced in the OBS 2012, as the first attempt to articulate a set of guidelines on how public participation ought to be structured.
Indicators were based on six principles:
Participation should occur throughout the budget process
Participation should occur with all parts of the government
Participation should have a legal basis
The purpose of public engagement should be publicized in advance
Multiple mechanisms for public engagement should be implemented
The public should be provided with feedback on their inputs
Indicators were implemented in the OBS 2012 and OBS 2015

8. OBS Indicators on Public Participation
Changes in the 2017 OBS
Why the changes? Growing consensus that public participation is an essential component of a well-functioning, accountable budget system. GIFT members reached consensus on principles for public participation: basis for widely accepted norms around and guidance on what should be assessed.
What changed? Section 5 of the questionnaire has been revised and expanded, to make sure indicators were covering all the items that would need to be assessed, when assessing public participation, reflecting GIFT’s principles.
Implications? Comparability with 2012/2015 is compromised, but indicators are better aligned with global consensus on the issue, and more comprehensive.

9. Structure of the Public Participation section (OBS Section 5)
18 indicators are included in this section [expanded: 8 new questions, 4 dropped, the rest modified]
Questions are grouped around the institution who leads the participation mechanism(s), depending on the phase of the budget process: the executive, the legislative, and the Supreme Audit Institution
Executive sub-section: questions focus is on the lead budget agency in the country; an additional question gives space to showcase mechanism led by line ministries [new-more clarity]
For each institution, we evaluate practices pre-, during and post-participation: e.g., comprehensiveness and timeliness of information; description of the mechanism(s); feedback options
For budget formulation, approval and implementation, we developed indicators on the topics covered during public participation [new]
Let’s look at a few sample questions:

10. Does participation exist and how well-established is it?
Question 125
Does participation exist and how well-established is it?
Does the executive use participation mechanisms through which the public can provide input during the formulation of the annual budget (prior to the budget being tabled in parliament)?
Yes, the executive uses open participation mechanisms through which members of the public and government officials exchange views on the budget.
Yes, the executive uses open participation mechanisms through which members of the public provide their inputs on the budget.
Yes, the executive uses participation mechanisms during the budget formulation phase, but either these mechanisms capture only some ad-hoc views, or the executive invites specific individuals or groups for budget discussions (participation is not, in practice, opened to everyone).
The requirements for a “c” response or above are not met.

11. Inclusiveness of the participation mechanism(s)
Question 126:
Inclusiveness of the participation mechanism(s)
With regard to the mechanism identified in question 125, does the executive take concrete steps to include vulnerable and under-represented parts of the population in the formulation of the annual budget?
Yes, the executive takes concrete steps to include individuals and/or CSOs representing vulnerable and underrepresented parts of the population in the formulation of the annual budget.
The requirements for an “a” response are not met.

12. Question 127: Topics covered by the engagement
During the budget formulation stage, which of the following key topics does the executive’s engagement with citizens cover?
For the purpose of this question, key topics are considered to be:
Macroeconomic projections;
Revenue forecasts, policies, and administration;
Social spending policies;
Deficit and debt levels;
Public investment projects;
Public services
The executive’s engagement with citizens covers all six topics
The executive’s engagement with citizens covers at least three (but less than six) of the above-mentioned topics
The executive’s engagement with citizens cover at least one (but less than three) of the above-mentioned topics
The requirements for a “c” response or above are not met.

13. Question 131: Enabling participation
When the executive engages with the public, does it provide comprehensive prior information on the process of the engagement, so that the public can participate in an informed manner?
Comprehensive information must include at least three of the following elements: (1) Purpose; (2) Scope; (3) Constraints; (4) Intended outcomes; (5) Process and timeline
Comprehensive information is provided in a timely manner prior to citizens engagement in both budget formulation and implementation phases
Comprehensive information is provided in a timely manner prior to citizens engagement only prior to one of the two phases (formulation OR implementation)
Information is provided in a timely manner in both or one of the two phases, but it is not comprehensive.
The requirements for a “c” response or above are not met.

14. Question 132: Feedback to citizens
With regard to the mechanism identified in question 125, does the executive provide the public with feedback on how citizens’ inputs have been used into the formulation of the annual budget?
Yes, the executive provides a written record which includes both the list of the inputs received and a detailed report of how the inputs were incorporated into the annual budget.
Yes, the executive provides a written record which includes both the list of inputs received and a summary of the how the inputs were incorporated into the annual budget.
Yes, the executive provides a written record which includes either the list of the inputs received or a report or summary on how they were used.
The requirements for a “c” response or above are not met.

15. How formal + accessible are these mechanisms?
Question 134:
How formal + accessible are these mechanisms?
Are participation mechanisms incorporated into the timetable for formulating the Executive’s Budget Proposal?
Yes, the executive incorporates participation into its timetable for formulating the Executive’s Budget Proposal and the timetable is available to the public.
The requirements for an “a” response are not met.

16. For more information, please contact: emondo@internationalbudget
For more information, please contact: And visit:
Thank you!