Open Budget Survey 2015: - PowerPoint Presentation

Slide1

Open Budget Survey 2015: What does it say about budget transparency in India?

Centre for Budget and Governance Accountability Slide2

India Vs. South Asian Countries in OBS 2015

Score 0-20: Scant or None; 21-40: Minimal; 41-60: Limited; 61-80: Substantial; 81 and above: ExtensiveSlide3

Public Availability of Eight Key Budget Documents in South Asian Countries Slide4

Availability of Budget Documents in India during Various Rounds of OBSSlide5

India’s Budget Transparency Score since its inceptionSlide6

Reasons for Decline in OBI 2015 Score for India

Delay in publishing the Mid-Year Review Report and the Year-End Report;

One

of the underlying reasons could be that the position of Chief Economic Advisor to the Union Ministry of Finance was

vacant

for more than a year starting from September

2013

.

The

delay in producing two of the eight required documents seems to have been a temporary digression;

However

, these two reports produced timely in the subsequent FYSlide7

India’s Performance on Public Participation

There are 16 questions in OBS 2015 to measure scope for public to participate in the budget cycle;India’s score on this count is 19 out of 100, whereas Global Average is 25This indicates that the provision of opportunities for the public in the budget process is

weak

.

In the South Asia Region, Afghanistan (27) and Bangladesh (23) are ahead of India’s score.Slide8

GAPs in Public Participation

Very limited scope for public to participate in budget formulation stage;Legislatures do not hold public hearings on the budget;No formal mechanisms, where public can participate in budget process;Very limited scope for public to participate in the execution stage-Social Audit;Limited scope in participating in the Auditing stage, except through Advisory Board- No other formal mechanism to participate in this stage.Slide9

Budget Oversight

India’s score is 39 out of 100 with respect to the scope for effective oversight by the legislature; and In Planning stage the Legislature provides weak oversight and in Implementation stage it gives limited oversight.With respect to the oversight role by the

SAI

of India, India scored 75 out of 100-Adequate.

The Good Practices in India are:

Office of the

SAI

is independent

It has the full discretion to undertake audit, as it sees fit.

Chief of SAI

cannot be removed without legislative or Judicial approvalSlide10

Key Recommendations

On Improving Transparency:Produce and Publish Pre-Budget Statement;Institutionalize the publication of budget documents in a timely manner;Increase the comprehensiveness of the Citizens Budget Document; Executive’s Budget Proposal and In-Year ReportsSlide11

Key RecommendationsOn Improving Participation:

Establish credible and effective mechanisms for public to participate;Institutionalize such practices by amending budget manual of the country;On Improving OversightEstablish a specialized Budget Research Centre for the Legislature so that they can participate effectivelySlide12

Finally…

Strong ‘Political Will’ is required to improve transparency score of the country. There are encouraging examples of such strong political will being exercised in India. For example-Union Budget funds under Central Schemes do not bypass the State Budgets

anymore;

Union Government

invited

suggestions

and inputs for the Union Budget 2015-16

from the general public ;

time for the budget making process for

the Union

Budget 2016-17 has been

extended by advancing

the commencement of this process by two

months

An opportunity to make the

Pre-Budget consultations

more

substantive this time onwards