Upload
gavin-virgil-casey
View
217
Download
2
Tags:
Embed Size (px)
Citation preview
Budget support training
Module 5
Transparency and oversight of the budget(Third eligibility criterion)
Version October 2013
2
Outline of module 8
1. Why this new eligibility criterion?
2. How to assess initial eligibility: preparing the document for programme approval (supplement to the Action Fiche)
3. How to assess ongoing eligibility: preparing the payment file for the programme
3
Transparency and oversight of the budget
New eligibility criterion
Definition: Budget transparency is the full disclosure of all relevant fiscal information in a timely and systematic manner.
Why is it important for BS? Key element of good governance: domestic accountability
requires public availability of comprehensive, timely and reliable budgetary information
Allows control bodies (Parliament, auditors, media, civil society) to hold policy makers accountable for the collection and use of public resources
4
Assessment methodology
Definition of an entry point for provision of BS operations Assessment of progress based on a dynamic approach
The dynamic approach consists of
Identifying a baseline and setting realistic medium-term reform objectives during the formulation phase
Monitoring progress against the objectives
NB: Relevance & role of oversight bodies is examined under the FM eligibility criteria assessment (to avoid duplication)
5
To keep in mind
Budget transparency is necessary but not sufficient for oversight and scrutiny; support is also needed for: Strengthening national legislative and oversight bodies Strengthening internal control mechanisms Encouraging a participative BS approach (e.g.. association of
national control bodies to BS annual reviews, use of national audit reports to feed in policy dialogue)
Publication does not necessarily mean availability to the public. Effective accessibility must be assessed.
Reforms of transparency and oversight of the budget take time. Therefore it is important to set realistic objectives.
6
Outline of module 8
1. Why this new eligibility criterion?
2. How to assess initial eligibility: preparing the document for programme approval (supplement to the Action Fiche)
3. How to assess ongoing eligibility: preparing the payment file for the programme
1. Assessing the entry point
The government must have published its budget proposal or its enacted budget within the past or current budget cycle. Information must be available in print or on the web.
Under certain circumstances a programme can be approved if the partner government commits to meet the entry point before the first disbursement (to be specified in the Financing Agreement) for SBC in general and for BS contracts in SIDS/OCTs in exceptional and justified cases
7
2. Identification of key weaknesses on transparency and oversight of the budget
Provide: A short summary of OBI, PEFA (cf Guidelines Annex 6, table
Template A, 2.page 117 on the relevant 6 PEFA indicators) to inform on indicators and trends
An analysis of the main weaknesses assessed by focusing on: Key budget documents to be produced Key budget documents to be made available and accessible to
the public Timeliness of release of budgetary information Comprehensiveness of budgetary information (content) Quality, integrity and accuracy of budgetary information
Cf. Template table to present the key weaknesses page pp 118-119 (structure presented in the next slide).
8
Availability: Documents should be available to any person wishing
to access them
Comprehensiveness: Budget documents should allow a complete picture of central government’s fiscal forecasts, budget proposals and out-turn of the previous year.
Quality, integrity, accuracy: Realism and reliability of budget
data, accounting standards, data consistency, reconciliation with
other data.
Recommendation on comprehensiveness and quality complex issues (narrative) should rely on existing diagnostics (IMF ROSC,PEFA...).
Key Budget Document
Description Produced (Y/N)
Published (date, website)
Timeliness of Publication (Y/N)
Comprehensiveness & Quality (narrative on key issues)
Budget documents Availability due
1. Executive’s budget proposal
When presented to the legislature (at least before legislature approves it)
2. Enacted budget < 3 months after legislature approved it
3.In-year report (also monthly and quarterly reports)
< 3 months after reporting period
4. Mid-year report < 3 months after reporting period
5. Year-end report < 1 year after end of fiscal year (reporting period)
6. Audit report < 2 years after end of fiscal year
Running Head 12-Point Plain, Title Case
Key budget documents (cf. Appendix A of annex 6 page 123 of the Guidelines)
10
11
Budget cycle and key documents• Ensuring transparency and
accountability• Providing managerial information
Parliament
Annual Report
Budget document Supreme Audit
Institution
Audit report
Minister
Managementhas internal
control
Audit Committee
Audit report
Internal auditorService
providers
Info
rmatiio
n
Measu
res
Audit
Audit
12
3) Identification of the baseline and medium term objectives
Based on the analysis of weaknesses (chapter 2) Should identify the key weaknesses that can be addressed by the
BS programme Should be used to identify accompanying capacity development . Should identify realist reform objectives against which progress
will be measured during implementation.
Use table (page 120 of Annex 6):
13
Key budgetary document
Specific weaknesses/baseline
Medium term reform expectation (including
timing)
Means
Points to keep in mind
If Executive’s Budget Proposal and Year End Report or Audit Report are not published, medium term reform expectations must take them into account
More flexibility for short term programmes (< 3 years) SBCs and SIDS/OCTs
Mention how objectives will be supported and by which means: policy dialogue, conditions for variable tranche disbursement, participatory budget approach, capacity development measures.
Adapt reform expectations to country circumstances
14
15
Outline of module 8
1. Why this new eligibility criterion?
2. How to assess initial eligibility: preparing the document for programme approval (supplement to the Action Fiche)
3. How to assess ongoing eligibility : preparing the payment file for the programme
Assessing the entry point:
Same as for programme approval.
Assessing progress: Provide short updated summary of available international data
(PEFA, OBI, ..) using the template/table of Page 121 of annex 6. Use the table made at programme approval stage with
weaknesses and reform expectations and describe evolutions
16
Key budgetary document
Specific weaknesses/baseline
Medium term reform expectations (incl. timing)
Means Evolution since last assessment
Provide conclusion on ongoing eligibility: narrative to reflect confirmation of entry point situation and (satisfactory) progress with respect to reform expectations.
Points to keep in mind: As reforms in this area take time, it is not required to show
annual progress but rather demonstrate progress against baseline and medium-term reform expectations.
17