Open Budget Survey Tajikistan

Transcription

1 Open Budget Survey 2015 Section 1. Public Availability of Budget Docs. Section One: The Availability of Budget Documents contains a series of four tables that allow the researcher to examine and map the public availability and dissemination of its country s key budget documents (i.e., Pre- Budget Statement, Executive s Budget Proposal (EBP) and Supporting EBP Documents, Citizens Budget, Enacted Budget, In-Year Reports, Mid-Year Review, Year-End Report, and Audit Report), as well as any national laws regulating budget processes and financial management. Once filled in, these tables will serve as a foundation for the completion of the rest of the questionnaire, as researchers will reference the specific documents cited in the tables to answer the questions contained in Sections 2-5 of the questionnaire. Table 1. Key Budget Documents BUDGET DOCUMENT Full Title Fiscal Year the Budget Document Refers to Date of Publication Pre-Budget Statement Нишондиҳандаҳои макроиқтисодӣ, даромадҳои Буҷети давлатии Ҷумҳурии Тоҷикистон ва ҳадди ниҳоӣи хароҷоти он аз рўи соҳаҳо барои солҳои (Macroeconomic indicators, revenues of the State Budget of the Republic of and the level of nal expenditures of the budget by spheres for May 20, 2013

2 ) Executive's Budget Proposal (EBP) Проект Закона Республики Таджикистан о Государственном Бюджете Республики Таджикистан На 2014 Год (The Draft Law of the Republic of "On the State Budget of the Republic of for 2014") 2014 Sept 7, 2013 Supporting EBP Document Асосноккунии молиявӣ, иқтисодӣ ва хуқуқии Қонуни Ҷумҳурии Тоҷикистон "Дар бораи Буҷети давлатии Ҷумҳӯрии Тоҷикистон барои соли 2014" ва Нишондиҳандаҳои Буҷети давлатӣ барои солҳои (Financial, economic and legal basis of the Law of the Republic of "On the State Budget of the Republic of for 2014 and Indicators of the State Budget for ") Sept 7, 2013 Supporting EBP Document Тавзеҳот оид ба лоиҳаи Буҷети давлатии Ҷумҳурии Тоҷикистон барои cоли 2014 ва Нишондиҳандаҳои Буҷети давлатӣ барои солҳои (Explanation of the Draft Law the Republic of on the State Budget of the Republic of for 2014 and Indicators of the State Budget for ) Oct 25, 2013 Supporting EBP Document N/A N/A N/A Закон Республики Таджикистан о

3 Enacted Budget Государственном бюджете Республики Таджикистан на 2014 год (Law of the Republic of on State budget of the Republic of ) 2014 v 4, 2013 Citizens Budget (for EBP or Enacted Budget) Бюджет для общественности 2014 (Citizen's budget 2014) 2014 Jan 18, 2014 In-Year Report 1. Маълумот оиди иҷроиши Буҷети давлатӣ дар семоҳаи аввали соли 2014 (Information on the execution of the State Budget for the rst quarter of 2014) 2. Execution of State budget till 1-st Apr.2014 ( n.tj/downlo ads/daromadhoi%20da vl.%20mart2014.pdf) 3. Execution of republican budget upon classi cation til 1-st Apr.2014 ( n.tj/downlo ads/kharojot%20ba%20 1%20aprel.pdf) 2014 May 19, 2014 Additional in-year report Иҷроиши Буҷети давлатӣ ба холати 1 апрели соли 2014 (Execution of the State Budget due to the 1st April 2014) 2014 May 19, 2014 Additional in-year report Иҷрои қисми вазифавии Буҷети ҷумҳуриявии Ҷумҳурии Тоҷикистон ба якуми апрели соли 2014 (Functional classi cation of the execution of Republican budget of due to the 1st April 2014) 2014 May 19, 2014 Mid-Year Review N/A N/A N/A Отчёт по исполнению Государственного

4 Year-End Report бюджета 2012 года (Report on the execution of the State Budget for 2012 scal year) 2012 April 25, 2014 Audit Report N/A N/A N/A Sources: All these Budget documents (besides Audit report) are available on the official website of the Ministry of finance of at: link1 - and link Detailed links to Budget documents: 1. PBS: 2. EBP: 3. Supporting EBP Doc.1: 4. Supporting EBP Doc.2: 5. Enacted Budget: 6. Citizens Budget: 7. In-Year report: 8. Additional In-Year report 1: 9. Additional In-Year report 2: Year-end report: Comments: For the last years I and the Open Society Institute and the Ministry of finance did a big work to make the budget documents available for public. And as you can see the web site of the Ministry has most budget documents with real dates of publication. But there are still some comments I'd like to point out. 1. The budget year in starts in January and ends in December - it is just to remember 2. According to the Law and real practice the Ministry of finance sends the PBS and the first Draft Law of the State Budget to Government till 20 Sept. of the year, that's why I took the EBP and PBS for 2014 fiscal year as a main existing documents for today so that to use them for OBS The PBS 2015 and EBP 2015 are not still fully ready yet. 3. The MYR is not produced 4. The Audit report - I had telephone consultations with Mr. Emomov Mehrubon - representative of Information department of Accounting Chamber and got the info that Audit report is not published, the consultations with the Ministry of finance and some Officials of the Parliament also shows that Audit report doesn't published. Table 2a. Details about Availability Budget Documents Tick box if answer to the questions is yes Pre-Budget Statement Executive s Budget Proposal Enacted Budget Citizens Budget Is it produced at all? Is it produced for internal purposes only? Is it published too late compared to the accepted timeframe?

5 Is it available to the public in hard copy, with charge? Is it available to the public in hard copy, NO charge? Is it available to the public in soft copy, with charge? Is it available to the public in soft copy, NO charge? Is it available to the public online? If available online, provide internet/url address n.tj/downloa ds/ les/nishonai%20ma croiqtisodi.pdf n.tj/downloa ds/zakon%20o%20gos %20BD%20na% _russ.pdf n.tj/downloa ds/zakon%20o%20gos %20Budjete%20RT%20 na%202014%20god.pd f n.tj/downloa ds/budjet%20dlya%20o bsh.2014.pptx Is it machine readable? [only for electronic copies] Is there a citizens version of the budget document? N/A Sources: 1. These docs are available online on the website of the Ministry of finance of at do=static&page=budgetniy%20process 2. These docs can be provided on soft version from the Budget department of the Ministry of finance of (contact person is Muazzam Nazrieva - specialist of budget department Tel: ( ) , mnazrieva@gmail.com ). 3. The Ministry of finance prepared two very interesting files: a) Explanation of the Draft Law the Republic of on the State Budget of the Republic of for 2014 and Indicators of the State Budget for (link: and b)explanation of the basic directions of budgetary policy of the Republic of in 2014 and a brief explanation of macroeconomic indicators for (link: These are some kind of detailed presentation and explanation of PBS and EBP for public (the Ministry members call these docs as citizens version), but there are a lot of terminology still exists and very few charts, images and infographic used. I hope that these docs will be developed to citizens version in a future. The only version of citizens budget is developed on the basis of Enacted budget (link: Opinion:, I agree with the score but wish to add a comment, clarification, or suggest another reference. Comments: The Citizens' Budget is in the form of several PowerPoint slides - user-friendly and straightforward, albeit does not conform to international standards and is absolutely not in line with existing guidelines for the development of the Citizen's Budget. The bottom line is some form of delivery of fiscal messages and key budget figures on the enacted budget to citizens does appear to exist but requires substantial improvement. Table 2b. Details about Availability

6 Budget Documents Tick box if answer to the questions is yes In-Year Report Mid-Year Review Year-End Report Audit Report Is it produced at all? Is it produced for internal purposes only? Is it published too late compared to the accepted timeframe? Is it available to the public in hard copy, with charge? Is it available to the public in hard copy, NO charge? Is it available to the public in soft copy, with charge? Is it available to the public in soft copy, NO charge? Is it available to the public online? If available online, provide internet/url address n.tj/downloa ds/malum%20oidi%20ij r%20bujet2014.pdf N/A n.tj/downloa ds/ochet%20ob%20isp %20BD%20na2012g.pd f N/A Is it machine readable? [only for electronic copies] Is there a citizens version of the budget document? Sources: Comments: 1. These budget docs are available in soft copy upon request from official persons 2. In-Year Report, Year-end report are available on official web site of the Ministry of finance of. These are direct links to most budget docs: reports on execution of the State budget are posted at - and other docs are at - do=static&page=budgetniy%20process 3. MYR is not produced at all - the head of budget department of the Ministry Mr. Abibullaev N. confirmed it. 4. Audit report is used for internal use only. published version of AR was find. 5. All docs are posted in PDF format - that's why they are not machine readable. 6. Unfortunately the citizen version of these documents doesn't exist in practice. Opinion:, I agree with the score but wish to add a comment, clarification, or suggest another reference. Comments: Ministry of Finance produces In-Year report on revenue and expenditure performance in the first six months of a fiscal year, but no discussion of how these emerging fiscal trends will affect the full-year budget performance, including risks. Hence, no Mid-Year Review is produced.

7 Table 3. When Are the Key Budget Documents Made Available to the Public? Pre-Budget Statement: When is the Pre-Budget Statement made available to the public? 100. At least four months in advance of the budget year, and at least one month before the executive s budget proposal is introduced in the legislature 67. At least two months, but less than four months, in advance of the budget year, and at least one month before the executive s budget proposal is introduced in the legislature 33. Less than two months in advance of the budget year, but at least one month before the executive s budget proposal is introduced in the legislature 0. Does not release to the public, or is released less than one month before the executive s budget proposal is introduced to the legislature Executive Budget Proposal: When is the Executive Budget Proposal made available to the public? 100. At least three months in advance of the budget year, and in advance of the budget being approved by the legislature 67. At least two months, but less than three months, in advance of the budget year, and in advance of the budget being approved by the legislature 33. Less than two months in advance of the budget year, but at least in advance of the budget being approved by the legislature 0. Does not release to the public, or is released after the budget has been approved by the legislature Enacted Budget: When is the Enacted Budget made available to the public? 100. Two weeks or less after the budget has been enacted 67. Between two weeks and six weeks after the budget has been enacted 33. More than six weeks, but less than three months, after the budget has been enacted 0. Does not release to the public, or is released more than three months after the budget has been enacted In-Year Report: When are In-Year Reports made available to the public? 100. At least every month, and within one month of the period covered 67. At least every quarter, and within three months of the period covered 33. At least semi-annually, and within three months of the period covered 0. Does not release to the public Mid-Year Review: How long after the mid-point in the fiscal year (i.e., six months into the fiscal year) is the Mid-Year Review made available to the public? 100. Six weeks or less after the mid-point 67. Nine weeks or less, but more than six weeks, after the mid-point 33. More than nine weeks, but less than three months, after the mid-point 0. Does not release to the public, or is released more than three months after the mid-point Year-End Report: How long after the end of the budget year is the Year-End Report made available to the public? 100. Six months or less after the end of the budget year 67. Nine months or less, but more than 6 months, after the end of the budget year 33. More than nine months, but within 12 months, after the end of the budget year 0. Does not release to the public, or is released more than 12 months after the end of the budget year

8 Audit Report: How long after the end of the fiscal year are the final annual expenditures of national departments audited and released (except for secret programs)? 100. Six months or less after the end of the budget year months or less, but more than 6 months, after the end of the budget year 33. More than 12 months, but within 18 months, after the end of the budget year 0. Does not release to the public, or is released more than 18 months after the end of the budget year Sources: Comments: 1. Most if the recommendations of OBS were taken into account by the Ministry and finance, and one of them was - to show the publication date of the documents. w if you go on to the website of the ministry do=static&page=budgetniy%20process you can see that all budget docs has publication date and you can easily answer tho above questions. 2. The PBS-2014 made available on 20 May it is 7 months before the start of the budget year (budget year starts on the 1st of January) and 4 months before the EBP is introduced to the legislature (according to the practice the EBP introduced to the legislature at the October). That's why I chose first answer. 3. The EBP published at 7 Sept it is more than three months before the beginning of the budget year and 1 month before the en action of the budget (the Enacted budget is signed by the president on 31 Oct.2013). That's why I chose first answer. 4. The State statistic agency under the President of publish monthly report of the execution of state budget, but they are not available online. The Ministry of finance makes quarterly In-Year reports and makes available within three months as a practice. That's why my answer is "a". 5. Year-end report is published online within the second year after the end of the fiscal year - this is according to the practice. the publication date of the YER-2012 is 25 Apr The MYR is not produced in practice. 7. Audit report is produced but not published.(for internal use only) Opinion:, I agree with the score and have no comments to add. Table 4. General Questions YES/NO If yes, additional information; If no, please note N/A in the text box. Is there a website or web portal for government fiscal information? The website of the Ministry of nance of the Republic of is the leading website for governm. scal information for today. Link: n.tj Is there a law (or laws) guiding public financial management? 1. Law of the Republis of on public nance of the Republic of. 28 June 2011, 723. Are there additional laws regulating: Access to information? 1. The Law of the Republic of about the right for access to information, 18 June

9 Transparency? Citizens participation? Link: les/ konunho/2008/konun_ dar_borai_dastrasii_ittil oot.rar Sources: 1. The website of the Ministry of finance of provides most budget documents on the day. The link is provided above. 2. The main Law that regulates the public (state) financial management - is the law on public (state) finance of the Republic of. The link is provided above. 3. Access to information, transparency and participation - There is a Law about the right for access to information that was enacted at 18 June This law regulates the access to information. There is no concrete law or regulation about transparency or participation. But the some elements and regulations you can find in the following: - Strategy of the management of public finance of the Republic of for ; The law about State financial control, г., 396 and others. Opinion:, I agree with the score but wish to add a comment, clarification, or suggest another reference. Comments: Annual Law on State Budget merits inclusion in researcher's comments. Ministry of Finance also produces three-year PFM Action Plans based on the adopted long-term PFM strategy, with the former essentially binding for the government and discussed widely with development partners. RESEARCHER'S RESPONSE I agree, the PFM Strategy and plans can be also used as the documents for guiding the public financial management. These are the regulating documents but not the laws, therewise I pointed the Law on state finance of Section 2. Comprehensiveness of the Executive's Budget Proposal 001. Does the Executive s Budget Proposal or any supporting budget documentation present expenditures for the budget year that are classified by administrative unit (that is, by ministry, department, or agency)? A., administrative units accounting for all expenditures are presented. B., administrative units accounting for at least two-thirds of, but not all, expenditures are presented. C., administrative units accounting for less than two-thirds of expenditures are presented., expenditures are not presented by administrative unit. E. t applicable/other (please comment). Sources: The article 7 of the EBP on page 6 shows and other notes within the document show that Administrative unit classification data is not available for public. information about expenditures of ministry, department, or agencies is available in the EBP document.

10 Opinion:, I agree with the score and have no comments to add Does the Executive s Budget Proposal or any supporting budget documentation present expenditures for the budget year by functional classification? A., expenditures are presented by functional classification. B., expenditures are not presented by functional classification. C. t applicable/other (please comment). A. Score: 100 Sources:, the analysis shows that mostly information on the expenditures of the State and republican budget is provided by functional classification. See article 2, pp.1-2 of EBP -"Expenditures of the State budget upon functional classification" and article 6, pp 3-6 of EBP "Expenditures of the Republican budget upon functional classification". Opinion:, I agree with the score and have no comments to add If the Executive s Budget Proposal or any supporting budget documentation presents expenditures for the budget year by functional classification, is the functional classification compatible with international standards? A., the functional classification is compatible with international standards. B., the functional classification is not compatible with international standards, or expenditures are not presented by functional classification. C. t applicable/other (please comment). A. Score: 100 Sources: the data on expenditures in EBP covers most general functional sections of the standards. The data provided in article 2 of the EBP covers functional classification by the state - aggregated and in article 6 it is more detailed provided (transport, hospitals, mass media, debt service etc.). Opinion:, I agree with the score but wish to add a comment, clarification, or suggest another reference.

11 Comments: I agree with the researcher's score. There are three levels of functional budgetary classification (FBC), in line with the OECD and the UN's COFOG. Often, publicly available information covers only the highest level of FBC (i.e. allocations by all 14 sectors) Does the Executive s Budget Proposal or any supporting budget documentation present expenditures for the budget year by economic classification? A., expenditures are presented by economic classification. B., expenditures are not presented by economic classification. C. t applicable/other (please comment). A. Score: 100 Sources: Article 8 of the EBP on page 6 provides Expenditures of the Republican budget by economic classification: wages and salaries, buying goods and services, social insurance, transfers, capital expenditures and etc. But some of the indicators and information aggregated. Opinion:, I agree with the score and have no comments to add If the Executive s Budget Proposal or any supporting budget documentation presents expenditures for the budget year by economic classification, is the economic classification compatible with international standards? A., the economic classification is compatible with international standards. B., the economic classification is not compatible with international standards, or expenditures are not presented by economic classification. C. t applicable/other (please comment). A. Score: 100 Sources: I can say that information on expenditures is compatible with the standards as it contains the most classification indicators according to the IMF manual, for instance: actual expenditures, expenditures for goods and services, subsidies and other transfers, social benefits etc., see page 6 of the EBP. But still some of the data provided is aggregated. Opinion:, I agree with the score and have no comments to add.

12 006. Does the Executive s Budget Proposal or any supporting budget documentation present expenditures for individual programs for the budget year? A., programs accounting for all expenditures are presented. B., programs accounting for at least two-thirds of, but not all, expenditures are presented. C., programs accounting for less than two-thirds of expenditures are presented., expenditures are not presented by program. E. t applicable/other (please comment). C. Score: 33 Sources: Very few budget information on expenditures of state and republican budget provided by program classification. You can find some program classification about the expenditures in the sphere of agriculture on page 6 of the EBP and some program details about expenditures in the sphere of medicine and education on page 4 of the EBP. Opinion:, I agree with the score and have no comments to add Does the Executive s Budget Proposal or any supporting budget documentation present expenditure estimates for a multi-year period (at least two-years beyond the budget year) by any of the three expenditure classifications (by administrative, economic, or functional classification)? A., multi-year expenditure estimates are presented by all three expenditure classifications (by administrative, economic, and functional classification). B., multi-year expenditure estimates are presented by two of the three expenditure classifications. C., multi-year expenditure estimates are presented by only one of the three expenditure classifications., multi-year expenditure estimates are not presented by any expenditure classification. E. t applicable/other (please comment).

13 Sources: Unfortunately no any multi-year estimates on expenditures provided in the EBP. Most of the data is for 2014 fiscal year. Opinion:, I do not agree with the score. Suggested Answer: c. Comments: My preference would be answer choice "c" (, multi-year expenditure estimates are presented by only one of the three expenditure classifications.). Ministry of Finance confirmed they do submit three-year estimates broken down by sectors, although these submissions are not immediately available on their official website. Supporting documentation to the Executive's Budget Proposal (EBP) does appear to include three-year expenditure estimates (with indicative ceilings per each sector, i.e. at the first-level functional budgetary classification). The data is aggregated and these three-year estimates are not integrated into the EBP but they are being submitted by Ministry of Finance annually. RESEARCHER'S RESPONSE The question is not about availability but mostly of accessibility. The additional docs of EBP that are mentioned in the PR were not accessible upon request at that time Does the Executive s Budget Proposal or any supporting budget documentation present expenditure estimates for a multi-year period (at least two-years beyond the budget year) by program? A., multi-year estimates for programs accounting for all expenditures are presented. B., multi-year estimates for programs accounting for at least two-thirds of, but not all, expenditures are presented. C., multi-year estimates for programs accounting for less than two-thirds of expenditures are presented., multi-year estimates for programs are not presented. E. t applicable/other (please comment). Sources: Multi-year estimates for programs are not presented. All data provided for 2014 fiscal year only. see the EBP document, link: Opinion:, I agree with the score and have no comments to add Does the Executive s Budget Proposal or any supporting budget documentation present the individual sources of tax revenue (such as income tax or VAT) for the budget year? A., individual sources of tax revenue accounting for all tax revenue are presented.

14 B., individual sources of tax revenue accounting for at least two-thirds of, but not all, tax revenues are presented. C., individual sources of tax revenue accounting for less than two-thirds of all tax revenues are presented., individual sources of tax revenue are not presented. E. t applicable/other (please comment). A. Score: 100 Sources: Article 5 on page 3 of the EBP presents sources of tax revenues of the budget such as VAT, income tax, excise tax, sales tax on cotton fiber and primary aluminum, tax road users, etc. The information provided covers all tax revenue. Besides article 13 of EBP, pp.8-10 describes The ratio of tax and non-tax revenues to the national budget and local budgets which also contains information on individual sources of tax revenue. Opinion:, I agree with the score and have no comments to add Does the Executive s Budget Proposal or any supporting budget documentation present the individual sources of nontax revenue (such as grants, property income, and sales of government-produced goods and services) for the budget year? A., individual sources of non-tax revenue accounting for all non-tax revenue are presented. B., individual sources of non-tax revenue accounting for at least two-thirds of, but not all, non-tax revenues are presented. C., individual sources of non-tax revenue accounting for less than two-thirds of all non-tax revenues are presented., individual sources of non-tax revenue are not presented. E. t applicable/other (please comment). C. Score: 33 Sources: The fact is that the information on individual non-tax revenue sources is not disaggregated that's why it is very difficult to assess the degree of it. but some how the data provided in article 1, p.1 and art.5, p.3 of the EBP shows that basic non-tax-revenues are provided. The source of grants, international credits and other n-t revenue is not detailed. Opinion:, I agree with the score and have no comments to add.

15 011. Does the Executive s Budget Proposal or any supporting budget documentation present revenue estimates by category (such as tax and non-tax) for a multi-year period (at least twoyears beyond the budget year)? A., multi-year estimates of revenue are presented by category. B., multi-year estimates of revenue are not presented by category. C. t applicable/other (please A. Score: 100 Sources:. The research shows that the EBP doesn't contain a multi-year estimation on the revenue of the state or republican budget. Opinion:, I do not agree with the score. Suggested Answer: a. Comments: Supporting documentation to EBP breaks down revenue estimates by category for a multi-year period. Here is the link to a sample attachment to EBP: RESEARCHER'S RESPONSE Finally I found the link to this document? here is: ( this file is available on the website of the ministry and it seems to be posted on the 15 Apr This doc is named as "Indicators of the revenues of the Satet budget of for ". According to the instruction I gave my answer using the EBP and its supporting docs that are indicated in the first and second tables of the Questionnaire. I didn't use this doc as EBP supporting document. But it can be accapted as EBP supplementing docs if it is possible. IBP COMMENT Based on the additional information provided by the peer reviewer and researcher, IBP agrees that answer choice "a" is appropriate Does the Executive s Budget Proposal or any supporting budget documentation present estimates for individual sources of revenue presented for a multi-year period (at least two-years beyond the budget year)? A., multi-year estimates for individual sources of revenue accounting for all revenue are presented. B., multi-year estimates for individual sources of revenue accounting for at least two-thirds of, but not all, revenue are presented. C., multi-year estimates for individual sources of revenue accounting for less than two-thirds of revenue are presented., multi-year estimates for individual sources of revenue are not presented. E. t applicable/other (please comment).

16 Sources:, multi-year estimates for individual sources of revenue are not presented. data on estimate revenue is found. Opinion:, I do not agree with the score. Suggested Answer: a. Comments: Supporting documentation to EBP breaks down revenue estimates by category for a multi-year period. Here is the link to a sample attachment to EBP: Does the Executive s Budget Proposal or any supporting budget documentation present three estimates related to government borrowing and debt: the amount of net new borrowing required during the budget year; the total debt outstanding at the end of the budget year; and interest payments on the debt for the budget year? A., all three estimates related to government borrowing and debt are presented. B., two of the three estimates related to government borrowing and debt are presented. C., one of the three estimates related to government borrowing and debt are presented., none of the three estimates related to government borrowing and debt are not presented. E. t applicable/other (please comment). B. Score: 67 Sources: Only one indicator- the total debt outstanding at the end of the budget year presents in the EBP supporting doc.2 On page 3 of the document "Explanation of the draft law of the state budget of " you can see the estimation table of the government debt for 2013 and 2014 fiscal years with estimate changing. But the information about the amount of net new borrowing required during the budget year and interest payments on the debt for the budget year doesn't presented in the EBP or any supporting documents. P.S. It is mention to say that Ministry of finance of makes very good reports on government debt (see the link do=static&page=gosdolg) indicating the composition of the debt and all other consistent indicators. But on the link you can find reports for the past years only and no vast information on the debt is provided in the EBP. Opinion:, I agree with the score and have no comments to add. RESEARCHER'S RESPONSE The deficit is also shown in the paragraph 3, item 1 on page 2. It is written that estimated deficit for 2014 FY is 0.5% of GDP or thous.somoni in sum. IBP COMMENT

17 As both the deficit and total debt outstanding are presented, IBP would accept answer choice "b" for this question Does the Executive s Budget Proposal or any supporting budget documentation present information related to the composition of the total debt outstanding at the end of the budget year? (The core information must include interest rates on the debt instruments; maturity profile of the debt; and whether it is domestic or external debt.) A., information beyond the core elements is presented for the composition of the total debt outstanding. B., the core information is presented for the composition of the total debt outstanding. C., information is presented, but it excludes some core elements., information related to composition of total debt outstanding is not presented. E. t applicable/other (please comment). Sources: Unfortunately the information on composition of total debt divided by internal and external and other elements doesn't covered in the EP or any supporting documents. There is a total aggregated indicator on government debt only (page 5 of the EBP supporting document 2). As I mentioned before the Ministry of finance makes good reports on government debt but they cover the past years, no detailed information is provided in the EBP or supporting docs. Opinion:, I agree with the score but wish to add a comment, clarification, or suggest another reference. Comments: Information on debt is sent separately, not in EBP or supporting documents. Besides, debt information is sent by Ministry of Finance only to heads of Parliamentary chambers, bypassing Committee on Economy and Finance under Lower Chamber of the Parliament Does the Executive s Budget Proposal or any supporting budget documentation present information on the macroeconomic forecast upon which the budget projections are based? (The core information must include a discussion of the economic outlook with estimates of nominal GDP level, inflation rate, real GDP growth, and interest rates.) A., information beyond the core elements is presented for the macroeconomic forecast. B., the core information is presented for the macroeconomic forecast. C., information is presented, but it excludes some core elements., information related to the macroeconomic forecast is not presented.

18 E. t applicable/other (please comment). B. Score: 67 Sources: the core information on nominal GDP level, inflation rate, real GDP growth; and rate of the national currency against the U.S. dollar is presented on page 2 of the EBP supporting document #2 "Explanation of the Draft Law the Republic of on the State Budget of the Republic of for 2014 and Indicators of the State Budget for " (see link: The indicators provided show the estimation on 2014 in comparison with 2013 and show the possible variation, change in the dynamics. Opinion:, I agree with the score and have no comments to add. RESEARCHER'S RESPONSE It is interesting I found all indicators but Interesting rate. Angali you are right. this element is excluded Does the Executive s Budget Proposal or any supporting budget documentation show the impact of different macroeconomic assumptions (i.e., sensitivity analysis) on the budget? (The core information must include estimates of the impact on expenditures, revenue, and debt of different assumptions for the inflation rate, real GDP growth, and interest rates.) A., information beyond the core elements is presented to show the impact of different macroeconomic assumptions on the budget. B., the core information is presented to show the impact of different macroeconomic assumptions on the budget. C., information is presented, but it excludes some core elements., information related to different macroeconomic assumptions is not presented. E. t applicable/other (please comment). Sources: The analysis of the data provided in EBP doc.2 (pp.2-7) shows that following the estimated indicators on real GDP, inflation rate and other macroeconomic indicators the table of the estimated revenue and expenditures of state budget provided (p.3). But there is no detailed sensitive analysis on the variation of macroeconomic indicators and its possible influence on budget revenue and expenditures. that's why I chose answer C - that information is presented, but some core elements excluded. Opinion:, I agree with the score but wish to add a comment, clarification, or suggest another reference. Comments: Currently, Ministry of Finance has neither sufficient capacity nor staff time to conduct sensitivity analysis, which goes into EBP

19 and/or supporting documents as a discussion of various macroeconomic assumptions and their likely effects on state budget and fiscal policy Does the Executive s Budget Proposal or any supporting budget documentation present information for at least the budget year that shows how new policy proposals, as distinct from existing policies, affect expenditures? A., estimates that show how all new policy proposals affect expenditures are presented, along with a narrative discussion. B., estimates that show how all new policy proposals affect expenditures are presented, but a narrative discussion is not included. C., information that shows how some but not all new policy proposals affect expenditure is presented., information that shows how new policy proposals affect expenditure is not presented. E. t applicable/other (please comment). C. Score: 33 Sources: Analysis shows that only some policy proposals affect expenditures. For instance on page 6 of the EBP supporting document #2 you can find explanation of why the expenditures on social sphere are growing higher then other fields of budgeting, that new policy of the Government turned to developing of social sphere and it is counted to be the prioritized field of budgeting. Opinion:, I agree with the score but wish to add a comment, clarification, or suggest another reference. Comments:, information is provided in EBP on how new policy proposals affect expenditures (e.g., wage bill increases to segments of public sector employees and/or civil servants, new concessional investment deals, recapitalization of state-owned enterprises, etc.). In the meantime, the quality and depth of such analysis merits substantial improvement Does the Executive s Budget Proposal or any supporting budget documentation present information for at least the budget year that shows how new policy proposals, as distinct from existing policies, affect revenues? A., estimates that show how all new policy proposals affect revenues are presented, along with a narrative discussion. B., estimates that show how all new policy proposals affect revenues are presented, but a narrative discussion is not included. C., information that shows how some but not all new policy proposals affect revenues are presented., information that shows how new policy proposals affect revenues is not presented. E. t applicable/other (please comment).

20 Sources: information about the new policy proposals that affect revenues is presented in EBP or other supporting document. Opinion:, I agree with the score and have no comments to add Does the Executive s Budget Proposal or any supporting budget documentation present expenditures for the year preceding the budget year (BY-1) by any of the three expenditure classifications (by administrative, economic, or functional classification)? A., expenditure estimates for BY-1 are presented by all three expenditure classifications (by administrative, economic, and functional classification). B., expenditure estimates for BY-1 are presented by two of the three expenditure classifications. C., expenditure estimates for BY-1 are presented by only one of the three expenditure classifications., expenditure estimates for BY-1 are not presented by any expenditure classification. E. t applicable/other (please comment). C. Score: 33 Sources:, the information on expenditures of preceding year is provided in EBP supporting doc#2 "Explanation of the Draft Law the Republic of on the State Budget of the Republic of for 2014 and Indicators of the State Budget for " on pp.5-8. The information comparing total budget expenditures and expenditures by functional and economic classification: education, government service, etc. by 2014 comparing with 2013 year is provided. But the information provided doesn't cover administrative classification. Opinion:, I agree with the score and have no comments to add. RESEARCHER'S RESPONSE There is data on economic classification, for instance: - indent 3 on p.6 describes the expenditures for salary, -the last indent on p.7 shows expenditures for construction of hydro electro station of Rogun, -Service of domestic and external debt is at indent 2 construction of social buildings indent 1 on p.8 etc. IBP COMMENT For cross-country consistency purposes, IBP would accept answer choice "c" for this question, as expenditures are not broken down in a manner consistent with an economic classification.

21 020. Does the Executive s Budget Proposal or any supporting budget documentation present expenditures for individual programs for the year preceding the budget year (BY-1)? A., programs accounting for all expenditures are presented for BY-1. B., programs accounting for at least two-thirds of, but not all, expenditures are presented for BY-1. C., programs accounting for less than two-thirds of expenditures are presented for BY-1., expenditures are not presented by program for BY-1. E. t applicable/other (please comment). Sources: Information on individual programs for the 2013 year doesn't presented in the EBP or any supporting documents. Opinion:, I agree with the score and have no comments to add In the Executive s Budget Proposal or any supporting budget documentation, have expenditure estimates of the year prior to the budget year (BY-1) been updated from the original enacted levels to reflect actual expenditures? A., expenditure estimates for BY-1 have been updated from the original enacted levels. B., expenditure estimates for BY-1 have not been updated from the original enacted levels. C. t applicable/other (please comment). B. Sources: I have compared the expenditures estimates for 2013 BY in EBP supporting doc.2 with Enacted budget 2013 (the link for the document is 8%20%D1%81%D0%BE%D0%BB%D0%B8% doc) and found out that the estimates in EBP support.doc.2 didn't change, was not updated from the original Enacted budget Opinion:, I do not agree with the score. Suggested Answer: a.

22 Comments: The second supporting document (see Table on page 3) shows "adjusted budget" figures, which reflects an update from the original enacted levels of expenditure and revenue. RESEARCHER'S RESPONSE The total expenditures for BY-1 on p.5 doesn't show updated figures. If you look at the 1st indent of paragraph 2 on p.1 of EB for 2013 FY (the link is shown in the citation) you can see that total figures for expenditures are the same, i.e. not updated Does the Executive s Budget Proposal or any supporting budget documentation present estimates of expenditure for more than one year prior to the budget year (that is, BY-2 and prior years) by any of the three expenditure classifications (by administrative, economic, or functional classification)? A., expenditure estimates for BY-2 and prior years are presented by all three expenditure classifications (by administrative, economic, and functional classification). B., expenditure estimates for BY-2 and prior years are presented by two of the three expenditure classifications. C., expenditure estimates for BY-2 and prior years are presented by only one of the three expenditure classifications., expenditure estimates for BY-2 and prior years are not presented by any expenditure classification. E. t applicable/other (please comment). Sources:, the EBP or other supporting document doesn't present BY-2 expenditures estimates. Opinion:, I agree with the score and have no comments to add Does the Executive s Budget Proposal or any supporting budget documentation present expenditures for individual programs for more than one year preceding the budget year (that is, BY-2 and prior years)? A., programs accounting for all expenditures are presented for BY-2 and prior years. B., programs accounting for at least two-thirds of, but not all, expenditures are presented for BY-2 and prior years. C., programs accounting for less than two-thirds of expenditures are presented for BY-2 and prior years., expenditures are not presented by program for BY-2 and prior years. E. t applicable/other (please

23 Sources:. The analisys shows that there is no any information about expenditures of individual programs for BY-2. The links for the EBP - Opinion:, I agree with the score and have no comments to add In the Executive s Budget Proposal or any supporting budget documentation, what is the most recent year presented for which all expenditures reflect actual outcomes? A. Two years prior to the budget year (BY-2). B. Three years prior to the budget year (BY-3). C. Before BY-3. actual data for all expenditures are presented in the budget or supporting budget documentation. E. t applicable/other (please comment). Sources: This info is not shown. Opinion:, I agree with the score and have no comments to add Does the Executive s Budget Proposal or any supporting budget documentation present revenue by category (such as tax and non-tax) for the year preceding the budget year (BY-1)? A., revenue estimates for BY-1 are presented by category. B., revenue estimates for BY-1 are not presented by category. C. t applicable/other (please comment). B.

24 Sources: In the EBP support.doc.2 on page 3 there is a table which contains information about revenue estimates. The first column of the table contains data for 2013 (BY-1). The total amount of revenues is divided by main categories: current budget revenues, state program of investment, government debt and special financial means. But the problem is most of them are aggregated. Opinion:, I agree with the score and have no comments to add Does the Executive s Budget Proposal or any supporting budget documentation present individual sources of revenue for the year preceding the budget year (BY-1)? A., individual sources of revenue accounting for all revenue are presented for BY-1. B., individual sources of revenue accounting for at least two-thirds of, but not all, revenue for BY-1 are presented. C., individual sources of revenue accounting for less than two-thirds of all revenues for BY-1 are presented., individual sources of revenue are not presented for BY-1. E. t applicable/other (please comment). Sources:, individual sources of revenue are not presented for BY-1. The EBP supporting doc.2 contains information on individual sources of revenue for 2014 BY (pp.4-5) but there is no information for BY-1. Opinion:, I agree with the score and have no comments to add In the Executive s Budget Proposal or any supporting budget documentation, have the original estimates of revenue for the year prior to the budget year (BY-1) been updated to reflect actual revenue collections? A., revenue estimates for BY-1 have been updated from the original enacted levels. B., revenue estimates for BY-1 have not been updated from the original enacted levels. C. t applicable/other (please comment). B.

25 Sources: The first column of the table for revenue estimates shown in the EBP supporting doc.2 "Explanation of the Draft Law the Republic of on the State Budget of the Republic of for 2014 and Indicators of the State Budget for " (link: on page 3 gives the revenue estimates data for 2013 upon the enacted level. Opinion:, I do not agree with the score. Suggested Answer: a. Comments: In the second supporting document (see Table on page 3), aggregate revenue estimates reflect "adjusted revenues" against the original plan in accordance with the State Budget Law. Hence, the original estimates of revenue for the year prior to the budget year (BY-1) have been updated to reflect actual revenue collections. RESEARCHER'S RESPONSE not updated. the total revenue for BY-1 in EBP is the same as it shown in the 1st indent of the 1st paragraph of EB for 2013 (the link for EB2013 is provided in the citation) Does the Executive s Budget Proposal or any supporting budget documentation present revenue estimates by category (such as tax and non-tax) for more than one year prior to the budget year (that is, BY-2 and prior years)? A., revenue estimates for BY-2 and prior years are presented by category. B., revenue estimates for BY-2 and prior years are not presented by category. C. t applicable/other (please comment). B. Sources:, the d provided in the EBP and other supporting documents shows that there is no any BY-2 revenue estimates there. So the answer is B. Opinion:, I agree with the score and have no comments to add Does the Executive s Budget Proposal or any supporting budget documentation present individual sources of revenue for more than one year prior to the budget year (that is, BY-2 and prior years)? A., individual sources of revenue accounting for all revenue are presented for BY-2 and prior years. B., individual sources of revenue accounting for at least two-thirds of, but not all, revenue are presented for BY-2 and prior years.