Measuring budget transparency

MEASURING BUDGET TRANSPARENCY THE OECD GUIDE ENUMERATES THE MAIN BUDGETARY DOCUMENTS WORKED OUT BY GOVERNMENTS AND OPEN BUDGET INDEX SCORE IN 2012 PRESENTS PRACTICAL SOLUTIONS INSURING A HIGH 1 Hungary 2 Czech Republic QUALITY AND UNIFORMITY OF DOCUMENTS. Best country This document is published in Hungary This document is not PRE-BUDGET STATEMENT Review of the main economic assumptions, actions (provisions), medium-term goals and targets, in order to orient expectations, encourage a more effective debate. MONTHLY REPORTS Development of main expenditures and revenues, reasons behind the deviations from the plan. prepared in Hungary CITIZEN'S BUDGET 1 3 The government presents the main elements of a budgetary document in an accessible way. 7 6 YEAR-END REPORT Comparison of performance targets and actual results based on financial and non-financial information, explanation of discrepancies, impact of interim measures. Can be attached to any report THE GOVERNMENT'S BUDGET PROPOSAL Appropriations, revenue targets, ceilings, authorizations justified by data. PRE-ELECTION REPORT* Illuminates the general state of government finances, perspectives and main risks. 2 7 It should be released no later than two weeks prior to elections 24 46 58 MID-YEAR REPORT Comprehensive feview of the imple- mentation of the budget, macroeco- nomic assumptions and an updated forecast of the budget outcome. LONG-TERM REPORT* Assesses the fiscal effects of long-term trends te.g. ageing, climate change, energetics) that can be detected only over a decades long horizon, presents scenarios. 8 4 Can be prepared regularly for a 25, 50 or even 75 year period IK. XII. II. IV. Iv. v. I VII. *Not included in the OBI-score VII. II. III. Three months before the beginning of the fiscal year One month before submission of the bill IV. V. Maximum 6 weeks after mid-year Every month following the month concerned Maximum 6 months after the end of the fiscal year THE OPEN BUDGET INDEX LEVELS OF TRANSPARENCY WITH EXAMPLES (2012) The International Budget Partnership is a civil initiative that every two years since 2006 calculates the Open Budget Index which measures the budget transparency of participating countries. This index mostly builds upon the reports above, examines their content and availability. The state of budget transparency is dismal but the trend is mending. Fiscal transparency is clearly not the privilege of the rich, but mainly a question of political will. 100 HUNGARY'S POSITION EXTENSIVE INFORMATION Hungary did not participate in the survey of 2012, but New Zealand (93), the United Kingdom (88), Sweden (84) the Fiscal Responsibility Institute calculated the index. 08 SIGNIFICANT INFORMATION The USA (79), Czech Republic (75), Uganda (65) 60 Hungary's score is among the worst in the region. It is important to see that budget transparency is strongly related to the quality of governance, which is an important factor in the functioning of democracy and ons about foreign direct investment. SOME INFORMATION Afghanistan (59), Romania (47), Hungary (40) 40 MINIMAL INFORMATION Serbia (39), Macedonia (35), Zimbabwe (20) 20 SCANT OR NO INFORMATION Nigeria (16), China (11), Qatar (0) in Reference: INTERNATIONAL FISCAL RESPONSIBILITY INSTITUTE BUDAPEST www.kfib.hu WHAT DO WE CHOOSE É Project by Transparency International Hungary and Fiscal Responsibility Institute HUNGARY KFIB AIA www.transparency.hu Infographics: infotandem www.mitvalasztunk.hu