In any democracy, no money can be raised or spent without the prior approval of the legislature. The legislative branch of government scrutinizes the executive branch’s budget proposals, debates them, amends or proposes alternatives – depending on the system of government – and approves or rejects them. The role of the legislative branch is to hold the government’s spending to account by scrutinizing its assumptions, its spending and revenue raising plans, as well as the results of its spending and revenue decisions. To fulfil its role, the legislative branch performs a variety of functions throughout the financial cycle and may be supported in its functions by several sources: library of parliament, independent fiscal institution, supreme audit institution, political party research staff, and civil society.
For more information, consult this Infographic developed by ParlAmericas, Global Initiative for Fiscal Transparency, Institute for Fiscal Studies and Democracy which describes each of the actors and summarizes their role in the budgetary process.
Several actors are involved across all phases of the budgetary process, each with their respective roles. Understanding the fiscal ecosystem can be helpful to identifying effective ways to involve the public in this process.
For more information, consult this Infographic developed by ParlAmericas, Global Initiative for Fiscal Transparency, Institute for Fiscal Studies and Democracy which describes each of the actors and summarizes their role in the budgetary process.
The Open Budget Survey is the world’s only independent, comparative assessment of the three pillars of public budget accountability: transparency, oversight and public participation. In terms of public participation, its analysis focuses on the use of mechanisms for participation (especially of marginalized groups) in the formulation of the annual budget, mechanisms for the public to monitor the implementation of the budget, information sharing prior to the public’s participation, public hearings at various stages of the budget and explanations of how public input has been integrated, among other criteria.
Consult your country’s results and engage with its author, the International Budget Partnership, to find out more and contribute your feedback.
Responsible actor: Committees
Parliamentary committees can conduct consultations with experts and the public and produce a report on their results for consideration by the government in the formulation of its budget. Consultations can be open-ended, centered on one or several specific topics of importance determined by the committee or aimed at specific segments of the population. Consultation methods can include public hearings, community round tables, written submissions, testimonies before committees, household surveys and online surveys among others. Ideally, a report summarizing the result of the consultations is presented.
Some examples are listed below.
Consultations administered by the finance committee on a particular subject-matter, resulting in a report presented to the Minister of Finance for consideration in the development of the national budget
Consultations administered by the finance committee based on the Minister of Finance’s budget consultation paper, resulting in a report presented to the Minister of Finance for consideration in the development of the budget
Kate Ryan-Lloyd at Training Session on Parliamentary Budget Consultation in Victoria, Canada on September 10, 2018
Member of Parliament Wayne Easter at Training Session on Parliamentary Budget Consultation in Victoria, Canada on September 10, 2018
Public forums held in provinces where citizens can share their needs and discuss what they want from their province; this information has been used by the Executive to inform its budget proposal
Responsible actor: Parliament, Committees
Parliament or committees can provide opportunities for the public to contribute their views on the budget proposal to be considered by parliamentarians as they debate and vote on the budget proposal. Consultation methods can include public hearings, community round tables, written submissions, testimonies before committees, household surveys and online surveys among others. Ideally, a report summarizing the result of the consultations is presented.
An example is listed below.
Web page offering the possibility for the public to submit input, comments and opinions regarding the national budget proposal, which are then considered by the Committee on Budget and General Accounts as part of its review of the budget proposal
Responsible actor: Parliamentarians
Participation level: Collaborate
Participatory budgeting is a democratic process in which community members directly decide how to spend part of a public budget. It is most commonly applied in regards to specific programs or municipal-level programs. Existing tools can be helpful for this practice.
Note: In some Parliaments, it can also be applied to constituency development funds, which are funding arrangements that channel money from central government directly to electoral constituencies for local infrastructure projects. These funds are generally controlled by individual parliamentarians. The use of constituency development funds has been considered potentially risky by the International Budget Partnership because it may promote a form of clientalism. There is concern that these practices have few accountability mechanisms and it may give constituents a false understanding that the role of their parliamentarian is to directly fund public projects. By utilizing a participatory budgeting approach to allocate these resources, parliaments would be promoting a more transparent and accountable process, thereby contributing to a more equitable and effective distribution of constituency development funds.
Some examples are listed below.
Mobile surveys and focus groups were held to better understand what the budget means to citizens in their daily lives, and how a participatory budget project could be implemented to meet their expectations
Multilingual and customizable online tool to educate citizens and receive citizen input in the formulation of the budget; creates powerful analytics for administrators; currently used at provincial level in Canada
Online budget simulator that educates and engages citizens in the budget process, currently used by more than 50 cities across Canada
Participatory Budgeting Project
Responsible actor: Committees
Parliamentary committees at various stages of the budget, from examining the budget proposal, to monitoring implementation and reviewing public accounts, can hold public hearings to not only inform citizens but also hear and consider their questions and input. Such hearings can take place in parliament or within different regions in the country, and feedback from experts and citizens can be provided in-person or through online tools.
An example is listed below.
Public hearings held by financial oversight committees where citizens can watch live and submit questions in the YouTube live chat which are provided to committee members (see associated policy under video in link above)
The following practices have been submitted by parliamentarians and related stakeholders, and describe techniques that can be applied to:
Creating Opportunities for Citizen Participation in the Budgetary Process
