Examples of countries that scored A in selected questions of OBI (samples, not complete sections).

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1 OBI Training materials for governments PRE-BUDGET STATEMENT Examples of countries that scored A in selected questions of OBI (samples, not complete sections). Release of PBS Q60. (71). When does the executive release a pre-budget statement to the public? a. The executive releases a pre-budget statement at least four months in advance of the start of the budget year. b. The executive releases a pre-budget statement at least two months (but less than four months) in advance of the start of the budget year. c. The executive releases a pre-budget statement, but it is released less than two months before the start of the budget year. d. The executive does not release a pre-budget statement. e. Not applicable/other (please comment). Guidelines for Question 60: The Pre-Budget Statement reflects the culmination of the strategic planning phase of the budget process, in which the executive broadly aligns its policy goals with the resources available under the budget s fiscal framework. This process establishes the parameters of the budget proposal before detailed program funding decisions are made. The statement also creates appropriate expectations for the budget itself, which is particularly important when the budget submission occurs close to the start of the fiscal year and the time for debate, therefore, is limited. The OECD states that best practice in this area requires the executive to release its Pre Budget Statement to the public at least one month prior to submitting its budget proposal to the legislature. Good practice also requires the executive to present the budget proposal to the legislature at least three months prior to the beginning of the fiscal year. This means that in order to receive an a answer on the Open Budget Survey, the Pre-Budget Statement must be released at least one month prior to the release of the Executive s Budget Proposal and ideally at least four months prior to the beginning of the fiscal year. South Africa The pre-budget statement, the Medium Term Budget Policy Statement (MTBPS), is released publicly four months before the start of the budget year. 1

2 Comment: The MTBPS 2008 was released on 21st October 2008, more than four months before the start of the next Fiscal Year, on 1st April of each year. The MTBPS for each of the previous three years was also released in October. Links: New Zealand Budget Policy Statement 2009, 18 December

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4 Macroeconomic and fiscal framework Q61 (72). Does the pre-budget statement describe the government s macroeconomic and fiscal framework? a. Yes, an extensive explanation of the government s fiscal and macroeconomic policy is presented, including both a narrative discussion and quantitative estimates. b. Yes, an explanation is presented, highlighting key aspects of the fiscal and macroeconomic framework, but some details are excluded. c. Yes, some explanation is presented, but it lacks important details. d. No, an explanation is not presented, or the executive does not release to the public a prebudget statement. e. Not applicable/other (please comment). Guidelines for Question 61: In terms of content, the Pre-Budget Statement should include a statement of the executive s economic and fiscal policy plans for the forthcoming budget year plus those for at least the following two fiscal years. Such a multi-year framework forms the basis upon which the budget numbers are defined in the Pre-Budget Statement. In terms of macroeconomic parameters, a Pre Budget Statement should present all key economic assumptions, such as the projected rate of GDP growth, the rate of employment and unemployment, the current account, and the inflation and interest rates. It also should highlight at least the aggregate levels of revenue, expenditure, deficit or surplus, and debt for the budget. When this information is presented and extensive explanations are provided, an a answer can be selected. Papua New Guinea Budget Strategy Paper %20Documents/2010%20BSP.pdf Fiscal Responsibility Act The Act specifies the requirements for the pre-budget statement, or Budget Strategy Paper, including risks entailed etc. Extensive presentations were made on macroeconomic and fiscal policies and framework through the annual regional and national development forums conducted by the Consultative Implementation and Monitoring Council (CIMC) to the public. 4

5 Links: %20Documents/2010%20BSP.pdf 5

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10 New Zealand Citation: See 10

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12 Policy priorities 12

13 Q62 (73). Does the pre-budget statement describe the government s policies and priorities that will guide the development of detailed estimates for the upcoming budget? a. Yes, an extensive explanation of the government s budget policies and priorities is presented, including both a narrative discussion and quantitative estimates. b. Yes, an explanation is presented, highlighting key aspects of the government s budget policies and priorities, but some details are excluded. c. Yes, some explanation is presented, but it lacks important details. d. No, an explanation is not presented, or the executive does not release to the public a prebudget statement. e. Not applicable/other (please comment). Guidelines for Question 62: Although a Pre-Budget Statement is unlikely to include detailed programmatic proposals, it should include a discussion of broad policy priorities, particularly on the expenditure side. The discussion could be organized by sector or by administrative unit. South Africa The MTBPS describes in detail the government's policies, objectives and priorities, setting out the policy context and direction for provinces and departments to make their spending plans. The MTBPS can be found online at: 13

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