1. Murray Petrie Lead Technical Advisor, GIFT GIFT-OGP Fiscal Openness Working Group, México, 28 October 2015 petrie@fiscaltransparency.net #FiscalTransparency PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles

2. WHY a new set of principles on fiscal transparency and public participation?  Post-GFC: renewed emphasis on fiscal transparency and participation accountability  Going beyond disclosure to direct public participation:  Participation a right of citizens.  To improve quality of policy design and implementation.  GIFT High Level Principles endorsed by UN General Assembly 2012:  High Level Principle 10: public participation in fiscal policy is a right of citizens  Need systematic and practical approach on public participation (case studies, review, workshops, Principles, Good Practices, measurement instruments) 2 PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles

3. GIFT High Level PRINCIPLE 10 Citizens should have the right and they, and all non-state actors, should have effective opportunities to participate directly in public debate and discussion over the design and implementation of fiscal policies. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 3

4. SCOPE of PUBLIC PARTICIPATION in fiscal policy Invited v autonomous participation Covers all fiscal policy and budget making activities:  The annual budget cycle (8 documents)  Fiscal policy reviews and new policy initiatives outside the annual budget cycle (revenues, expenditures, financing, asset, liability management)  The design and delivery of public services  The planning, appraisal & implementation of public investment projects PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 4

5. GIFT Case Studies of Public Participation in Fiscal Policy  Three initial studies: Brazil, Philippines, South Korea  Five more studies recently completed: o Canada o Croatia o Kenya o Mexico o South Africa Download all the #CaseStudies: www.fiscaltransparency.net PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 5

6. Some country EXAMPLES of public participation: the EXECUTIVE Stage in budget or fiscal policy cycle Country examples Pre-budget Canada; Kenya; Korea; Philippines National planningBrazil New policiesBrazil; Canada; Croatia Budget implementation: - Revenues - Public service delivery - Procurement - Evaluation Countries in EITI Kenya; Mexico; South Africa Croatia; Kenya; Countries in CoST Canada; Korea PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 6

7. Examples of participation: LEGISLATURE Stage in legislative cycleCountry examples Annual budget deliberation and enactment Canada; Croatia; Kenya; Korea; South Africa Spending BillsCanada; Croatia Annual Budget ReviewCroatia PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 7

8. Examples of public participation: SUPREME AUDIT INSTITUTION Stage in audit cycleCountry examples Audit planningKorea; Mexico Conducting auditsMexico; Philippines Review of audit reportsCroatia Audit follow-upArgentina; India (Andhra Pradesh); South Africa (Eastern Cape) PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 8

9. Structure of the Draft Public Participation Principles and Practices 1Introduction 2Scope 3Principles of public participation 4Practices: the principles in action PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 9

10. Ensuring inclusiveness and non-discrimination through the pro- active use of multiple mechanisms to reach and facilitate inputs from all citizens, including traditionally excluded groups, without discrimination as to political or other opinions, gender, ethnicity, religion, caste, citizenship, nationality or domicile. Example: Kenya’s pre-budget consultations PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 10 PRINCIPLE 1 Participation should be Inclusive

11. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 11 Encouraging the public to speak for itself: although there may be groups and mechanisms that are given standing to speak on behalf of others, individuals and communities should be allowed and encouraged to articulate their interests in their own ways, and to choose means of expression that they prefer. Examples: engagement via internet, supplemented by oral or written submissions, in-person meetings of various types PRINCIPLE 2 Participation should be Direct

12. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 12 Ensuring openness about the purpose, intended outcomes, process, and timelines of public participation. Example: Open Government Partnership Guidelines for development of National Action Plans: http://www.opengovpartnership.org/sites/default/files/attac hments/OGP_actionplan_guide%20FINAL.pdf PRINCIPLE 3 Participation should be Open

13. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 13 Allowing sufficient time in the budget and policy cycles for the public to provide inputs at each phase. Example: adequate notice of opportunities for engagement on Pre- Budget Statement, Budget Proposal, End of Year Report, Annual Reports of Ministries PRINCIPLE 4 Participation should be Timely

14. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 14 Facilitating and supporting public participation in general by disclosing fiscal information and data in formats and using mechanisms that are easy to access and to understand and that are designed to facilitate participation. Examples: translation into multiple languages as relevant; Citizen’s Guides; open data formats. PRINCIPLE 5 Participation should be Facilitated

15. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 15 Ensuring well-informed participation through providing specific background information and other tailored information, highlighting and informing key policy choices and trade-offs, and incorporating a diversity of perspectives, in a timely and accessible manner prior to consultation. Example: public consultation on location of new public infrastructure projects. PRINCIPLE 6 Participation should be Well-informed

16. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 16 Ensuring meaningful participation by consulting early while options still open, allowing for more than one round of engagement, using an appropriate mix of participation mechanisms, considering public inputs on an objective basis, and providing feedback on the inputs received and how they have been incorporated in official policy or advice. Example: ‘Green’ and ‘White’ Papers PRINCIPLE 7 Participation should be Meaningful

17. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 17 Engaging in on-going and regular consultations and deliberation to increase knowledge sharing and mutual trust over time, and institutionalizing public participation where appropriate and effective. Examples: laws or regulations requiring public engagement Tax Administration Review Tribunals Parent representation on school boards PRINCIPLE 8 Participation should be On-going

18. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 18 Ensuring that mechanisms for participation complement and support existing accountability systems and not establish parallel systems. Examples: public submissions to Legislative Committees considering the budget or reviewing budget implementation. PRINCIPLE 9 Participation should be Complementary

19. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 19 Non-state actors should be open about their mission, the interests they seek to advance, who they represent, and should be aware of the public interest in the use of public resources. Example: International NGO Charter: http://www.ingoaccountabilitycharter.org/ PRINCIPLE 10 Participation by non-state actors should be Open

20. Measuring public participation in fiscal policy: supplementary PEFA INDICATOR  PEFA is being revised: GIFT suggested additional public participation elements be built into a number of PEFA indicators.  The result was agreement to trial a supplementary indicator on participation, subject to agreement of the country authorities and the PEFA assessment team.  Currently being trialled in the Philippines as part of the PEFA assessment.  GIFT will also develop a more comprehensive measurement instrument. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 20

21. Pilot supplementary PEFA indicator on public participation in fiscal policy One indicator covering four dimensions: 1.Public participation across the annual budget cycle: Budget preparation and Legislative approval. 2.Public participation in the design and delivery of public services (two of largest sectors). 3.Public participation in the appraisal and implementation of public investment projects (sample of largest projects). 4.Public participation in oversight processes (legislative review, and Supreme Audit). PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 21

22. Issues for Discussion 1.What are the main opportunities to expand public participation in fiscal policy at the national level? 2.What are the main constraints? 3.What are your views on the draft GIFT Public Participation Principles? PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 22

23. Sources of Information  GIFT public consultation (to end October) on the draft participation principles: bit.ly/1JYU1Qr  Public Participation in Fiscal Policy: The Next Frontier of Budget Transparency: bit.ly/1JCP01U  GIFT country case studies of public participation in fiscal policy: www.fiscaltransparency.net/resources/ PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 23

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