1. Fiscal Transparency in Mongolia and its Commitments in OGP NAP 2016-2018
Oyunbadam.D (Ph.D)
Program Manager
Open Society Forum
2016

2. Content Results of Open Budget Survey 2015
Subnational Budget Transparency Survey 2013
Commitments on Fiscal Transparency in OGP NAP
Recommendation on commitments on fiscal openness

11. Assessment of Subnational Budget Transparency

12. Assessment of Subnational Budget Transparency 2011 and 2013
Objective
To assess the transparency of budget information at subnational level
Scope
Local governments of 21 provinces and the Capital city Ulaanbaatar
Score (average, out of 100) 35 36

13. Subnational Budget Transparency 2013
Transparency of Budget Information (released in 2013)
Budget Documents and processes
Average score (0-100 %) 1
Budget Execution Reports for 2012 and 2013 56 2
2013 Investment and Procurement 51 3
2014 Enacted Budget 49 4
Citizens’ Representative Khural Session for 2014 Executive’s Budget Proposal 46 5
2013 Budget for Local Special Funds 43 6
2013 Budget Revision 42 7
2014 Local Development Fund Plan 39 8
Reflection of budget transparency requirements in legal documents released by local governments 9
2013 Governor’s Reserve Fund 30 10
Donations and aids in 2013 and their spending 17 11
2014 Executive’s Budget Proposal and its discussion 15 12
Citizens Budget

14. Subnational Budget Transparency 2013
Subnational Budget Transparency Rating №
Provinces
Score
(0-100%) 1
Khuvsgul
55,3 2
Govisumber
52,4 3
Tuv
51,9 4
Dornogovi
48,9 5
Khovd
47,1 6
Uvs
46,4 7
Umnugovi
44,5 8
Ulaanbaatar
38,7 9
Khentii
37,1 10
Arkhangai
36,8 11
Bulgan
36,5 12
Darkhan-Uul
35,2 13
Dundgobi
34,5 14
Orkhon
32,1 15
Sukhbaatar
31,4 16
Dornod
29,3 17
Zavkhan
27,1 18
Uvurkhangai
27,0 19
Govi-Altai
26,7 20
Bayan-Ulgii
25,1 21
Selenge
18,3 22
Bayankhongor
15,0

15. Subnational Budget Transparency 2013 Main Findings
Budget is not transparent at subnational level.
Main causes of non-transparency:
Functions for overseeing subnational budget transparency is not specified by present legislation.
Accountability mechanism for non-transparency of budget information is not in place.
Some improvements in transparency:
Information on Enacted Budget and Citizens’ Representative Khural Session discussing Executive’s Budget Proposal is becoming more transparent.
Transparency of information on budget execution and procurement has relatively improved.

16. Subnational Budget Transparency 2013
Policy Recommendation
Improve implementation of existing legislations related to subnational budget transparency.
Create functions for overseeing subnational budget transparency.
Establish accountability mechanism for non-transparency (including incompleteness and non-timeliness) of subnational budget information.
Local governments reflect requirements for budget transparency in their legislative document.
Enact standards for subnational budget transparency.
Set requirement for archiving multi-year budget information online.

17. Mongolia OGP NAP 2016-2018 Commitments on fiscal transparency
1.To increase transparency of foreign loan and aid; 2.To disseminate information on online VAT registration system to public and companies; 3. To improve Public Budget Disclosure (Glass Account) System (The Law on Glass Accounts which came into force in January 2015 obliges all budget entities including state- owned enterprises to publish all transactions above US$2,500 with supporting documents.); and 4.To increase transparency of government procurement.

18. Recommendation on the commitments on fiscal openness to be included in NAP
To increase the comprehensiveness of budget documents (to present expenditure estimates by functional classification (which indicates the programmatic purpose, sector, or objective for which the funds will be used) in the Executive’s Budget Proposal, In-Year and Year-End Reports);
To mandate the production and publication of Mid-Year Review which provides a detailed explanation of the state of the budget six months into the budget year.
To publish the numerical data contained in budget documents in a machine readable format that can be easily processed by a computer (e.g., in Excel).
To increase public engagement in the budget process, Mongolia should:
ensure implementation of part on budget supervision hearing of the Law on Public Hearing adopted in 2015 and to raise public awareness of the Law; and
keep allocating resources for projects to be implemented under the Local Development Fund (LDF). Currently, LDF is the only way where public are directly engaged in budget process in the country as local people vote for projects to be implemented locally under this fund every year.

19. Thank you for your attention.
НЭЭЛТТЭЙ НИЙГЭМ ФОРУМ
OPEN SOCIETY FORUM
Thank you for your attention.