Open Budgets for Development
Explore the importance of budget transparency and public participation in promoting accountability and efficiency in government spending. Learn how budget transparency scores have evolved globally and the key findings from recent assessments. Discover the methods used to measure open budgets and the role of oversight institutions in ensuring financial accountability.
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Presentation Transcript
Open Budgets for Development By Daniel Ndirangu INSTITUTE OF PUBLIC FINANCE
Open Budgets, What is it? Costed government plans that are provided and promoted publicly for accountability 2 4/20/2025
Budget Transparency Promotes accountability Ensures implementation efficiency Monitoring development Enhancing credibility of implementation. 3 4/20/2025
Key findings in OBS 2017 Declines in budget transparency were most dramatic in Sub-Saharan Africa, Average budget transparency scores fell by 11 points between 2015 and 2017. Other regions experienced small increases or small declines in their scores, Exception of Asia, where the average score rose more substantially. A number of countries have experienced significant gains in transparency since they were first included in the survey Georgia, Jordan, Mexico and Senegal. 4 4/20/2025
a) Budget Transparency OBS assesses budget transparency based on the amount and timeliness of budget information governments are making publicly available. Each country is given a score between 0 and 100 that determines its ranking on the open budget index. 5 4/20/2025
b) Public participation OBS measures public participation in the budget process by assessing the opportunities governments are providing to civil society and the public to engage in decisions about how public resources are raised and spent 6 4/20/2025
c) Public participation Evaluates the role of formal oversight institutions, such as supreme audit institutions and legislatures. OBS measures Budget Oversight by Legislatures and Audit Institutions considering whether legislatures have adequate oversight practices. 7 4/20/2025
How can we measure open budgets? Use of Open the world s comparative assessment of the three pillars of accountability: oversight and public participation 115 countries in OBS 2017 Budget only Survey independent, public budget transparency, 8 4/20/2025
Kenya performance OBS 2017 9 4/20/2025
Open Budget Index- Kenya 10 4/20/2025
Importance of Open Budgets Open achievement of SDGS: two Key mentions: Addis Ababa Action Agenda: which provides the framework on financing of SDGS through transparent budgets budgets are central to Sustainable Development Goals No 16 and 17 (recognition of open budgets); 11 4/20/2025
Transparency and Development Reduced fiscal deficit Decreased information asymmetry And strengthening enforcement of fiscal rules Increased government spending on priorities 12 4/20/2025
Information asymmetry Results to; Unrealistic expenditure and revenue mobilization targets Concealed government spending Undocumented expenditures- Pending bills Transparency increase the likelihood of having credible and reliable budget Citizens evaluate budget performance 13 4/20/2025
What can Kenya do to improve? Parliament hearings should be sufficient in budget formulation OAG should have formal mechanism for engaging with public Treasury should engage more with public on formulation and on implementation Parliament should look at implementation reports and publish their findings Treasury should make Mid year report publicly available 14 4/20/2025
Conclusion Budget transparency remains limited around the world, governments failing to publish key documents. with many Vast majority of countries in the survey could transparency by making documents they already producing available. quickly improve publicly 15 4/20/2025
Conclusion Even where documents are available, basic information that many citizens would likely wish to have on sector spending, budget implementation, and the goals and outcomes of spending are missing national budgets. in most 16 4/20/2025
Conclusion Open budgets play a crucial role in the development Agenda; By making budget publicly available and enhancing public engagement Parliament and Executive, Kenya can improve its transparency score documents across OAG, 17 4/20/2025
INSTITUTE OF PUBLIC FINANCE www.ipfkenya.or.ke The Institute of Public Finance @ipfkenya Institute of Public Finance
