Mainstreaming Public Participation in Fiscal Policy and Budget Processes: Knowledge Products in PEMPAL Countries

1. Mainstreaming Public Participation in Fiscal Policy and Budget Processes: ‘knowledge products’ development in PEMPAL Countries PEMPAL Budget Community of Practice (BCOP) Budget Literacy and Transparency Working Group (WGBL) Videoconference May 22, 2019

2. Goals and objectives of the videoconference Goal Continuing and deepening the discussion about public participation in budget policy on the national government level, held during the BCOP’s plenary session on March, 2019. Objectives Discussing the completion of the background knowledge product about public participation in budget process on the national level with the help of professional consultant (integrationin the context of the PEMPAL countries’ experience is needed). Formulating the lessons learnt and practical use of them within the WGBL. Identifying objectives of the next knowledge product, devoted to public participation in budget policy, the elaboration of which is planned by the WGBL.

3. The stages of the final completing of the WGBL main knowledge product compiling , concerning public participation • Integration of the latest materials and knowledge, appeared during such key sessions as in Cascais and in Tashkent • Integration of the PEMPAL countries examples, obtained during the survey held in 2017-2018, and during presentations on this topic on the PEMPAL events (Croatia, Georgia, Kyrgyz Republic, Romania, Uzbekistan and others) • Updating and supplementing the knowledge product’s text with information from the latest presentations of the GIFT, using the best practices from international experience (for example, New Zealand) • Supplementing countries’ examples with the recent information from the International Budget Partnership’s Public Participation Index database(methodology, 2017) Only after the integration of all materials available to the WGBL about the experience of the PEMPAL countries the knowledge product can be considered as completed.

4. Sources of information for the final development of the knowledge product • Materials of international organizations recent speeches (2 plenary meetings of the BCOP in Vienna and Tashkent, study visit to Cascais and the GIFT seminar in Zagreb) • H. Masud’s presentation on the results of the PEMPAL countries survey (BCOP plenary meeting in Vienna) • the addition to it: presentations of PEMPAL countries on the topic of the public participation over the last 2 years • The International Budget Partnership’s Public Participation Index database: http://survey.internationalbudget.org/#profile/AL • M. Petrie’s presentation “Public Participation in Fiscal Policy • at the National Level: Selected Country Examples", Tashkent, March 18, 2019 [hereinafter – slides 5-12]

5. 1. Why engage directly with the public? • Global Financial Crisis: publishing information insufficient for accountability. • To gain information and insights from citizens, business, experts. • To improve the design and implementation of tax and spending policies. • To improve the efficiency and effectiveness of line ministries. • To increase legitimacy, trust in government, willingness to pay taxes. • Participation is key for Sustainable Development Goals: 1-poverty,5-genderequality, 10-reduce inequality, 16-peace, justice & inclusive institutions. • Government data at reach: big data, open data & information technologies. Source: Murray Petrie, “Public Participation in Fiscal Policy at the National Level: Selected Country Examples”, Tashkent, March 18, 2019 5

6. 1. Fiscal Policy Engagement Mechanisms Source: Murray Petrie, “Public Participation in Fiscal Policy at the National Level: Selected Country Examples”, Tashkent, March 18, 2019 6

7. 2. NZ Treasury: Public engagement mechanisms Source: Murray Petrie, “Public Participation in Fiscal Policy at the National Level: Selected Country Examples”, Tashkent, March 18, 2019 7

8. 2. NZ Treasury engagement: concluding observations Wide variety of engagement mechanisms: one-off/institutionalised; single stage/mulitple rounds; informal/legally required; expert-based and general public. Spans macro-fiscal, tax, expenditure, investment; mainly outside annual budget. Role of Treasury v role of government. Limited centralised guidelines for staff, reliance on experienced staff and culture of cross-Treasury discussion and sharing of experience. Often done on short time frames, but sometimes long drawn out, political factors. Well-establishednon-government actors and patterns of interaction. Specific efforts and mechanisms to engage Maori (indigenous people). Delays (sometimes long) in publishing submissions and summary of submissions. Most work done by Treasury staff, within baselines, occasional contracting out. Clear processes to manage privacy issues; potential conflicts of interest etc. Source: Murray Petrie, “Public Participation in Fiscal Policy at the National Level: Selected Country Examples”, Tashkent, March 18, 2019 8

9. 3.A Pre-Budget Consultations South Africa: Tips for the Minister: general public invited to submit proposals for next budget on Treasury web site or hand them in. Over 500 tips per year. Treasury Communications staff vet them for Minister, submit shortlist of 10 to Treasury executive team. Minister considers those that are closest to government priorities and refers to them in Budget Speech. Canada: since 1990s, pre-budget consultations with the public organized by Dept. of Finance to gather input on government's areas of focus for upcoming budget. Use of social media (Google Hangouts, Facebook), dedicated website . Purpose, scope and process outlined in press release on launch of consultations. Source: Murray Petrie, “Public Participation in Fiscal Policy at the National Level: Selected Country Examples”, Tashkent, March 18, 2019 9

10. 4.B South Africa: Annual budget workshop with CSOs Programme agreed between Treasury, sector experts and CSOs. Increasingly detailed agendas, questions pre-agreed, for targeted engagements. Treasury funds (within baseline) venue hire (if not hosted at government buildings), catering, staff and CSO travel and accommodation costs, printing of documentation. Used to take Treasury 6 months to organise, decreased to an average of 3 months. New CSO structures have evolved making meaningful engagement possible again. For example, IMALI YETHU, a coalition of civil society was formed to partner directly with Treasury to develop the budget online portal, www.vulekamali.gov.za. Results: better understanding of role of Treasury, and of trade-offs required in budgeting; new and deeper Treasury/CSO collaborations. Could use more ICT tools; more social audits; evidence-based CSO submissions. Source: Murray Petrie, “Public Participation in Fiscal Policy at the National Level: Selected Country Examples”, Tashkent, March 18, 2019 10

11. 5. Direct public engagement by MOFs: main levers and tools • Any general or fiscal policy-specific regulatory or legal requirements to consult • Annual budget cycle: • Two-stage budget process, consultation on macro-fiscal policy • Budget Call Circular • Leverage with respect to new spending initiatives • Major tax or expenditure reviews • Choice of expert-based, CSO-led, or general public, or mixes • Opportunities to use new ICT tools (to facilitate consultation and citizen monitoring) • Perfromance-oriented budgeting: KPIs on citizen satisfaction and engagement • Work with reform-minded Finance Ministers • Collaboration with reform-minded line ministries Source: Murray Petrie, “Public Participation in Fiscal Policy at the National Level: Selected Country Examples”, Tashkent, March 18, 2019 11

12. 5. Direct public engagement by MOFs: some issues for discussion • What country examples of specific engagement mechanisms are most relevant to your country, and why? • What do you see as the appropriate role of the MOF in your country, compared to the role of the government; the legislature; the role of line ministries? • What level of capacity does your MOF have for public engagement? • What is the civil society context in your country? e.g. number and role of CSOs; presence of umbrella national CSOs; levels of capacity; nature of government/civil society relations. • What are the main challenges you see to increased or new public engagement? • What do you think are the key requirements for a specific new public engagement mechanism to be introduced in your country? • What role could GIFT play to support your efforts? Source: Murray Petrie, “Public Participation in Fiscal Policy at the National Level: Selected Country Examples”, Tashkent, March 18, 2019 12

13. Development of the following “knowledge products” of the BTLWG on public participation issues. Fork • Public participation in the fiscal policy and the budgetary processes in international practice is most often implemented on the basis of two approaches: • “higher" - at the national level, • and “lower” - at the level of municipal budgets - participatory budgeting • The BTLWG participants will have to decide on which way to go at this stage: • Continue an in-depth study of public participation tools at the national level • To shift the focus of the work of the BTLWG on the participatory budgeting practices of the municipal level Depending on the choice of the BTLWG member countries, the next product of knowledge will be devoted either to tools for public involvement at the national level, or to participatory budgeting. At the next meeting, the BTLWG will be able to discuss the structure of the new knowledge products.

14. Discuss the activities on the further development of the BTLWG • Perhaps the Working Group should involve a professional consultant with a request to develop guidance on thematic and organizational development of further activities for the medium term? • Consultations may also concern the methodology of the International Budget Partnership and the GIFT on the assessment of openness and public participation, as the BTLWG sets one of its tasks to the growth of the IBP indices in this area. • Search for possible ways of interaction within PEMPAL with other international societiesorWork Groupforresults-based budgeting. • Other suggestions from the BTLWG participants meeting.

15. Thank you for your attention! Anna Belenchuk, PEMPAL BTLWG Leader Anna.Belenchuk@minfin.ru