CITIZEN ENGAGEMENT IN BUDGETING AND PUBLIC ACCOUNTABILITY

Transcription

1 CITIZEN ENGAGEMENT IN BUDGETING AND PUBLIC ACCOUNTABILITY Emilia T. Boncodin Professor University of the Philippines 6 th Session Committee of Experts in Public Administration April 10 14, 2007 United Nations, New York, USA and Public Accountability 1

2 Contents of Presentation Context Budgeting and Budgets Definition Importance Limitations Rationale for Citizen Engagement Instruments of Citizen Engagement Examples of Citizen Engagement Public Accountability Definitions Tools of Public Accountability Limitations Rationale for Citizen Engagement Instruments of Citizen Engagement Examples of Citizen Engagement and Public Accountability 2

3 Contents of Presentation Benefits and Drawbacks of Citizen Engagement Enabling Factors for and Public Accountability Summary Recommendations and Public Accountability 3

4 CONTEXT 4 1 External Scrutiny Performance, Outcomes, and Audit Compliance Policies, Value Strategies Public Financial Management Records, Reports (PFM) Target Results, Output Formulation of fiscal policy and budget preparation 3 Indicators 2 Execution and Delivery Legislation/ Approval and Public Accountability 4

5 Budgeting and Budgets Budgeting : the provision of financial resources to government functions to accomplish program and project objectives. Budgeting encompasses the following: - formulation of fiscal policies - determination of aggregate budget size - allocation of budget resources to functions, programs, projects, activities of government in accordance with priorities - issuance of funds authority to government entities - reporting, review and monitoring and control of financial transactions and Public Accountability 5

6 Budgets : - the financial translation of, or the amount required, to undertake the program of government for a given period - Budgets present in detail the sources of government funds and the uses thereof and Public Accountability 6

7 Importance of Budgets As a planning tool to direct government resources to desired ends As a control tool to ensure the compliance with legal and regulatory requirements As a measurement tool to determine government performance and the extent of accomplishment of targets As an information tool to report to citizens the sources and uses of public funds and Public Accountability 7

8 Limitations of Budgeting and the Budget Process Essentially a top-down process Highly regulated and control oriented A technical process but subject to a high degree of political intervention Generally not open to public scrutiny except during Parliamentary debates Poor budget performance tracking system Lack of capacity of budget personnel and Public Accountability 8

9 Rationale for Citizen Engagement Demystify the budget and the budget process Respond to basic needs of citizens at grassroots Improve budget allocation and facilitate fund distribution procedures Prevent financial corruption and enhance accountability and Public Accountability 9

10 INSTRUMENTS OF CITIZEN ENGAGEMENT IN BUDGETING _INSTRUMENT POSITIVES NEGATIVES Membership in development or budget councils of executive agencies - direct advocacy for specific - If in minority, can programs and projects easily be outvoted. (e.g., agriculture, education, - Questionable grant of gender, health) greatly equal voting rights to influences budget decision CSOs vs. elected making representatives - Selection of citizen s representatives Organized advocacy - Independent voice and - Actual influence may be (CSOs,, peoples constructive engagement minimal without credible organizations) maintained advocacy - Generally focused on - Danger of elite capture specific sectors, thereby once influence is stressing neglected established sectors and Public Accountability 10

11 Examples of Citizen Engagement In Budgeting _Country Brazil _Organization_ Porto Alegre local government Nature of Engagement Mobilization of a large proportion of the population in identifying budget priorities at the district level, at the same time provide pressure for accountability South Africa Women Budget Initiative Advocacy for gender sensitivity in budget formulation and implementation through review of budget expenditure components and monitoring of agency implementation and Public Accountability 11

12 Examples of Citizen Engagement... cont d _Country Organization Nature of Engagement Philippines Naga City local government Civic organization representatives sit in local councils as voting members, wide engagement of civic groups in identification of budget priorities Indonesia District of Jembrana, Bali local government Distribution of block grants to the community for managing schools; local community allocates block grants according to their needs Establishment of independent teams in monitoring procurement processes and Public Accountability 12

13 Public Accountability INTOSAI Definition : Public accountability pertains to the obligations of persons or entities entrusted with public resources to be answerable for the fiscal, managerial and program responsibilities that have been conferred on them, and to report to those that have conferred these responsibilities. Elements of Public Accountability the recognition of the responsibility the provision of information on performance in a manner which users can interpret accurately the potential to impose sanctions and Public Accountability 13

14 Tools of Public Accountability legislative oversight judicial review internal audits external audits media civil society organizations and Public Accountability 14

15 LIMITATIONS OF CURRENT PRACTICES state audit reports not widely disseminated to the public or if disseminated, are not timely nor useful for decision making state audit reports more focused on compliance or regularity audits than on performance or value for money audits poor parliamentary oversight due to weak structure of country SAIs lack of capacity on the part of auditors to review transactions particularly those employing innovative approaches lack of manpower to review volume of transactions SAIs not completely independent from political powers and Public Accountability 15

16 RATIONALE FOR CITIZEN ENGAGEMENT Provide direct and independent feedback from beneficiaries on actual outputs / results Expand coverage of audits, particularly at local level Enhance dissemination of agency performance to citizens Serve as complainants in behalf of those intimidated by formal accountability processes Help deter corruption at oversight and audit bodies and Public Accountability 16

17 INSTRUMENTS OF CITIZEN ENGAGEMENT IN ACCOUNTABILITY FORM Open hearings POSITIVES - Direct feedback between implementors and beneficiaries - Government compelled to be highly accountable to citizens - Citizen empowerment promoted NEGATIVES - Confrontational nature can create avenues for airing of personal grudges - Can be difficult to manage if some highly technical issues are involved Expenditure tracking systems - Validates actual use of resources to intended objectives - Validates compliance to prescribed procedures and approval process - Requires skill in validation of reports which may not necessarily exist in CSOs - Can be costly - Requires cooperation of implementors in providing information and Public Accountability 17

18 FORM SAI or Government initiated partnerships Citizen Report INSTRUMENTS OF CITIZEN ENGAGEMENT IN ACCOUNTABILITY POSITIVES - Cooperation of SAI or government institutions in providing access to information assured - Corrective measures or sanctions likely to be undertaken on validated financial anomalies - Indirect feedback on government performance on areas of interest to citizens - Useful for comparison of performance of government entities NEGATIVES - Veto power of SAIs on certain complaints submitted - Imposition of limitations on nature of complaints - Sustainability problems if not enshrined in law - Needs sustained financial support and can be costly and Public Accountability 18

19 Country Examples of Citizen Engagement in Public Accountability Organization Nature of Organization Nature of Engagement INDIA MKSS peasant and worker union social audit; public hearing forums on results of local government expenditures at village leve SOUTH AFRICA PSAM research and advocacy organization tracking of government agency responses to financial issues raised in the Auditor General s report SOUTH KOREA CCEJ advocacy group citizens audit request system: based on information collected from official and non-official official sources, request audit of suspected financial misconduct by agencies; files cases in accordance with audit results and Public Accountability 19

20 Country Examples of Citizen Engagement in Public Accountability Organization Nature of Organization Nature of Engagement ARGENTINA ACIJ research and advocacy group monitoring government action; documentation of violations against laws and contracts entered into between government and private parties; establishment of legal clinics PHILIPPINES CCAGG non- government organization expenditure tracking of infrastructure projects; volunteers observe construction and reports findings MEXICO FUNDAR research and advocacy organization transparency and citizen participation evaluation system (SEPAT): development and application of indicators that evaluates local governments in terms of transparency and participative approaches and Public Accountability 20

21 Benefits and Drawbacks of Citizen Engagement Benefits : Better prioritization of budget resources (demand-driven) driven) Greater citizen ownership and support for budget programs Complementation of activities between state auditors and civil society thereby expanding coverage and improving quality of review and accountabilities More credible public dissemination of government programs Government personnel more aware of external scrutiny and become more responsive to public needs Promotes reform in processes and procedures Reduction in corruption Improved services and Public Accountability 21

22 Drawbacks Lack of understanding of legal and structural nuances of processes Dependence on ODA support, sometimes government support, in participatory activities, the result of which could compromise independence Destructive competition among some CSOs Sustainability of advocacies can be weakened by leadership changes Weak internal operating and financial mechanisms among CSOs Elite capture and Public Accountability 22

23 Enabling Factors for Citizen Engagement in Budgeting and Public Accountability Existence of a legal framework that will mandate participatory governance and citizenship engagement to assure sustainability of o partnership Strong commitment and leadership of government financial managers to engage citizens groups Right to information of citizens and the provision of timely, relevant and accurate information on budgets, performance results and other data of interest to citizens Credible civil society or citizens groups that are ready to recognize good practices of implementors at the same time are vigilant in criticizing suspected anomalies Capacity building on both ends: government, in partnering with civil society, and civil society partnering with government Training of CSOs in financial management procedures, and of government personnel in current trends and practices and Public Accountability 23

24 SUMMARY Citizen engagement in budgeting and public accountability is a relatively recent phenomenon compared to other areas of public governance. While there have been outstanding demonstration of citizen engagement in some countries, there remains a general hesitancy in Finance and Budget Organizations, and in particular in SAIs,, in sharing responsibilities on budgeting and audit with citizens groups. Most citizen engagements have occurred at local or village levels. Several modalities have opened up to citizens groups in engaging governments in budgeting and audit institutions that encourage future partnerships. These modalities include actual field feedback, performance indicator surveys, citizen report cards, among others. and Public Accountability 24

25 SUMMARY... cont d The benefits of citizen engagement clearly outweighs the drawbacks. The drawbacks, however, must be addressed to ensure CSO credibility and sustainability. Citizen engagement in budgeting and public accountabilities enhance country commitments to the MDGs by advocating affirmative action for MDGs in the budget and monitoring accomplishment and Public Accountability 25

26 RECOMMENDATIONS UN, through its various units, should continue to advocate CE in budgeting and public accountability particularly in the following : enactment of laws that will mandate, if not encourage, participatory processes in budgeting and audit strengthening of public expenditure management institutions and procurement procedures promotion of independence of state audit institutions enactment of laws that grant right to information of citizens Advocacy should continue to focus at the local level. National level citizen engagement should be done gradually through support to results-based budgeting and accountability. and Public Accountability 26

27 RECOMMENDATIONS... cont d In budgeting, the Public Financial Management (PFM) and Public Expenditure Management (PEM) frameworks being advocated by multilateral organizations should be enhanced by indicators of citizen engagement. In public accountability, dialogue between UN-DESA and INTOSAI, the International Organization of Supreme Audit Institutions that audit the UN itself should be undertaken to explore areas of possible citizen engagement. and Public Accountability 27

28 End of presentation. thank you! and Public Accountability 28