Home ›› 01 Jun 2023 ›› Editorial
Open Budget Score (OBS) the outcome of the survey of the Open Budget Initiative (OBI), an US NGO measures public access to information on how the central government raises and spends public resources. It assesses the online availability, timeliness, and comprehensiveness of eight key budget documents using 109 equally weighted indicators and scores each country on a scale of 0 to 100. A transparency score of 61 or above indicates a country is likely publishing enough material to support informed public debate on the budget.
Bangladesh got a transparency score of 30 (out of 100). Bangladesh awarded best score of 58 in FY 2015 and transparency score of declining to far and transparency score of 30 in the OBS 2021 is moderately lower than its score in 2019. In the OBI 2019, Bangladesh’s score was 36, 41 in 2017 and 58 in 2015. The global average score is 45 while Bangladesh got 30 similar to Sri Lanka. Others in South Asia is Pakistan 46, Afghanistan 43, Nepal 39 and India 37.
The study uses to review whether the information is opened up to the citizens through (1) Pre-Budget Statement, (2) Executive’s Budget Proposal, (3) Enacted Budget, (4) Citizens Budget, (5) In-Year Reports, (6) Mid-Year Review, (7) Year-End Report and (8) Audit Report, etc.
According to survey of FY 2021, pre-Budget statement, in-year reports, and year-end report are either published late, or not published online, or produced for internal use only. The executive’s Budget proposal enacted Budget and citizens Budget was available for public. Mid-year review and Audit Report were not available.
According to study, the executive budget proposal of FY 2021 has been submitted by the executive to the legislature for approval. The details the sources of revenue, the allocations to ministries, proposed policy changes, and other information important for understanding the country’s fiscal situation. The budget has been approved by the legislature in the Parliament.
A citizen budget was simpler and less technical version of the government’s executive’s Budget proposal or the enacted Budget, designed to convey key information to the public. The in-year report includes information on actual revenues collected, actual expenditures made, and debt incurred at different intervals; issued quarterly or monthly has been late to publish. A mid-year report containing comprehensive update on the implementation of the budget as of the middle of the fiscal year; includes a review of economic assumptions and an updated forecast of budget outcomes. Annual audit report issued by the supreme audit institution, this document examines the soundness and completeness of the government’s year-end accounts was not conducted on time.
Bangladesh has decreased the availability of budget information by reducing the information provided in the Executive’s Budget Proposal by not publishing the contents of the Medium-Term Budgetary Framework (MTBF) for FY 2020-21. At the time of research, the MTBF (Bangla) was published late - after the budget was approved. The MTBF (English) was not published. Subsequently, the MTBF for FY 2021-22 was published on time.
The OBI suggested that to improve in the study, Bangladesh should prioritize the following actions to improve budget transparency: (1) Publish the Pre-Budget Statement, In-Year Reports and Year-End Report online in a timely manner. In-Year Reports should be produced and published online within three months after the end of the reporting period, and the Year-End Report should be published within one year of the end of the reporting period. At the time if research, only the Year-End Report for FY 2014-15 was published on MoF’s website. (2) Produce and publish the Mid-Year Review online in a timely manner. For a half year quarterly report to qualify as Mid-Year Review, it should include macroeconomic and fiscal forecasts for the remainder of the year, as well as revised and updated estimates for revenues and expenditures. (3) Include in the Executive’s Budget Proposal data on the financial position of the government and data on the macroeconomic forecast. Ensure that the files associated with the Medium Term Budgetary Framework (MTBF) are always uploaded in a timely manner. (4) Improve the comprehensiveness of the Enacted Budget by publishing details on expenditures and revenues. (5) Produce and publish the Audit Report within 18 months of the reporting period. Supreme Audit Institutions can achieve this by trying to close the gap between the completion of fiscal year, and the audit of the financial accounts for that fiscal year.
The OBS assesses the formal opportunities offered to the public for meaningful participation in the different stages of the budget process. It examines the practices of the central government’s executive, the legislature, and the supreme audit institution (SAI) using 18 equally weighted indicators, aligned with the Global Initiative for Fiscal Transparency’s Principles of Public Participation in Fiscal Policies, and scores each country on a scale from 0 to 100. Bangladesh has a public participation score of 13 (out of 100) while global average is 14. The participation of Nepalese citizen is 24 and highest in South Asia. Among other Sri Lanka 19, Afghanistan 13 and Pakistan and India got only 9.
As a standard practice, Ministry of Finance has established pre-budget deliberations during budget formulation but, to further strengthen public participation in the budget process, should also prioritize the following actions: (1) Pilot mechanisms to monitor budget implementation. (2) Ensure that participants of pre-budget deliberations have sufficient prior information to participate meaningfully, and that inputs are considered during budget formulation. (3) Actively engage with vulnerable and underrepresented communities, directly or through civil society organizations representing them.
The National Parliament has established public hearings related to the approval of the annual budget, but should also prioritize the actions to allow any member of the public or any civil society organization to testify during the hearings of the Parliamentary Standing Committee on the budget proposal prior to its approval and allow members of the public or civil society organizations to testify during hearings on the Audit Report. On the other hand, The National Parliament provides limited oversight during the planning stage of the budget cycle and weak oversight during the implementation stage.
In practice, ensure the legislature is consulted before the executive shifts’ funds specified in the Enacted Budget between administrative units. The is beyond the provision of constitution. The Ministries spends any unanticipated revenue or reduces spending due to revenue shortfalls during the budget year.
The Member of the Parliament get the printed copy of the budget proposal just after entering in to Parliament for presentation of the budget by the Finance Minister. The Executive’s Budget Proposal should be submitted to legislators at least two months before the start of the budget year. Legislative committees should examine the Executive’s Budget Proposal and publish reports with their analysis online. A legislative committee should examine in-year budget implementation and publish reports with their findings online.
To strengthen independence and improve audit oversight by the Bangladesh Office of the Comptroller and Auditor General, the following actions are recommended require legislative or judicial approval to appoint the head of the supreme audit institution and ensure audit processes are reviewed by an independent agency. The Comptroller and Auditor General (CAG) should prioritize the following actions to improve public participation in the budget process by establishing formal mechanisms for the public to assist in developing its audit program and to contribute to relevant audit investigations.
The OBS examines the role that legislatures and supreme audit institutions (SAIs) play in the budget process and the extent to which they provide oversight; each country is scored on a scale from 0 to 100 based on 18 equally weighted indicators. In addition, the survey collects supplementary information on independent fiscal institutions.
A legislative committee should examine the Audit Report and publish a report with their findings online. Bangladesh does not have an independent fiscal institution (IFI). IFIs are increasingly recognized as valuable independent and nonpartisan information providers to the Executive and/or Parliament during the budget process.
The writer is Non-Government Adviser, Bangladesh Competition Commission. He can be contacted at [email protected]
