Open Budget Initiative 2006

Slovenia

dr. Mitja Čok

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Open Budget Initiative 2006

International Budget Project was established in 1997 as part of the “Center on Budget and Policy Priorities” - Washington DC

It is non-partisan, non-profit research organization Its aim is to support civil society organizations interested in

strengthening public budget processes, institutions and outcomes

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Open Budget Questionnaire

Captures the transparency of budget process Does not evaluate the quality or credibility of information on budget

expenditure, which are publicly available Does not evaluate the quality or credibility of macroeconomic

forecasting, expenditure forecasting, etc. Final answers are reviewed by two independent experts It contains 122 questions

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Open Budget Questionnaire

Open Budget Index is derived of the responses to 91 of the questions, which evaluate :

– The appropriateness of the information for policy analysis– Comprehensiveness of the information provided– The timeliness of the documents

regarding the seven key budget documents:

1. Executive’s Budget Proposal (predlog proračuna)2. Citizen Budget (proračunska zgibanka)3. Pre-Budget Statement (proračunski memorandum)4. In-Year Reports (mesečna, trimesečna poročila)5. Mid-Year Reports (polletna poročila)6. Year-End Report (zaključni račun proračuna)7. Auditor’s Report (revizijsko poročilo)

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Open Budget Questionnaire

In this cycle (2005-2006) 59 countries were involved The next one is planned for 80 countries (in 2008)

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Section one: The Availability of Budget Documents

1.1. List of Budget Documents Used in Completing the Questionnaire

1.2. Internet Links for Key Budget Document

1.3. Distribution of Documents Related to the Executive’s Budget

Proposal

1.4. Distribution of the Enacted Budget and Other Reports

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Section Two: The Executive’s Budget Proposal

2.1. Estimates for the Budget Year and Beyond- Estimates of expenditures/revenues - yes- Availability of data on interest and public debt - yes (Budget Memorandum)- Macroeconomic forecasts - different scenarios only for internal use- Estimates how changes in policy affect expenditures - not part of the budget

documentation

2.2. Estimates for Years Prior to the Budget Year - Estimates of expenditures/revenues - yes (Budget Memorandum) and Bulletin

of Government Finance- Is Bulletin of Government Finance supporting budget document?- Detailed presentation of tax/non-tax revenue

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Section Two: The Executive’s Budget Proposal

2.3. Comprehensiveness- Intergovernmental transfers - yes- Information on financial/non-financial assets - not part of budget documentation- Loan guarantees - not part of budget documentation- Donor assistance - only from the EU- No information on tax expenditure- Quasi-fiscal activities - not part of budget documentation

2.4. The Budget Narrative & Performance Monitoring - Link between the budget and government’s stated policy goals - yes,

sometimes very general- performance indicators - much to be done

2.5. Additional Key Information for Budget Analysis & Monitoring - Tax laws availability - yes, distribution of tax burden available internally - Budget availability - yes- Citizen Budget, glossary, budget process summary - no

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Section Three: The Budget Process

3.1. Executive’s Formulation of the Budget - Consultation with the parliament regarding budget priorities - no, after the

budget proposal is prepared- Consultation with the public - no

3.2. Legislative Approval of the Budget - Timetable- “Public hearings” in parliament – yes, ministries defend individual

budgets/press can attend- Time when the budget proposal is release to the public - ok- Authority to amend – yes, not increasing the budget deficit

3.3. Executive’s Implementation of the Budget- In-year report - yes, Bulletin of Government Finance (monthly)- Mid-year report - yes (January - June)- Procurement of goods and services - open, but examples of irregularities- Supplemental budget - before funds are expended / after in the case of

contingency funds

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Section Three: The Budget Process

3.4. Year End Report and the Supreme Audit Institution - Year-end report is submitted to the SAI- Year-end report explains the difference between enacted levels and actual

outcomes

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Open Budget Index:Overall

France 89 Philippines 51 Nepal 36United Kingdom 88 Jordan 50 Georgia 33New Zealand 86 Mexico 50 Uganda 31South Africa 85 Kenya 48 Ecuador 31Slovenia 81 Tanzania 48 Azerbaijan 30United States 81 Bulgaria 47 Cameroon 29Peru 77 Sri Lanka 47 Algeria 28Sweden 76 Russia 47 El Salvador 27Poland 73 Guatemala 46 Albania 24Brazil 73 Costa Rica 44 Bolivia 20South Korea 73 Kazakhstan 43 Nigeria 20Norway 72 Ghana 42 Nicaragua 20Romania 66 Hrvatska 42 Morocco 19Botswana 65 Malawi 41 Mongolia 18Czech Republic 64 Indonesia 41 Egypt 18Colombia 57 Turkey 41 Burkina Faso 11India 52 Bangladesh 40 Chad 5Papua New Guinea 51 Argentina 39 Angola 4Namibia 51 Honduras 38 Vietnam 2Pakistan 51 Zambia 37

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Open Budget Index:Executive’s Budget Proposal

United Kingdom 95 Pakistan 59 Cameroon 41New Zealand 89 Tanzania 57 Algeria 41France 86 Philippines 57 Ecuador 36South Africa 83 Bangladesh 56 Zambia 35United States 81 Jordan 56 Russia 34Brazil 79 India 55 Hrvatska 32Sweden 78 Costa Rica 54 El Salvador 29South Korea 76 Sri Lanka 53 Georgia 28Peru 75 Guatemala 50 Nigeria 23Botswana 75 Azerbaijan 48 Bolivia 22Norway 74 Nepal 47 Albania 17Romania 73 Indonesia 45 Nicaragua 17Slovenia 72 Bulgaria 45 Morocco 17Papua New Guinea 70 Honduras 45 Angola 0Namibia 68 Argentina 45 Burkina Faso 0Colombia 67 Turkey 44 Chad 0Poland 66 Uganda 43 Egypt 0Ghana 64 Kazakhstan 43 Mongolia 0Malawi 64 Kenya 42 Vietnam 0Czech Republic 64 Mexico 41

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Open Budget Index:Pre-Budget Statement

Brazil 100 Georgia 56 Ghana 0France 100 Tanzania 56 Guatemala 0Kenya 100 Kazakhstan 44 Honduras 0New Zealand 100 Albania 0 India 0Nigeria 100 Algeria 0 Indonesia 0Papua New Guinea 100 Angola 0 Jordan 0Peru 100 Argentina 0 Malawi 0Poland 100 Azerbaijan 0 Mexico 0Slovenia 100 Bangladesh 0 Morocco 0South Africa 100 Bolivia 0 Namibia 0South Korea 100 Botswana 0 Nepal 0Sweden 100 Bulgaria 0 Nicaragua 0Zambia 100 Burkina Faso 0 Norway 0Mongolia 89 Chad 0 Pakistan 0United Kingdom 89 Colombia 0 Philippines 0Turkey 78 Costa Rica 0 Romania 0Uganda 78 Czech Republic 0 Sri Lanka 0Hrvatska 78 Ecuador 0 United States 0Russia 67 Egypt 0 Vietnam 0Cameroon 67 El Salvador 0

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Open Budget Index:In-Year Reports on ExecutionBulgaria 100 Ecuador 85 Honduras 44Peru 100 Kenya 85 Namibia 44Romania 100 India 81 Pakistan 44South Africa 100 Jordan 81 Colombia 44Turkey 100 Guatemala 78 Zambia 41United States 100 Botswana 78 South Korea 26France 96 Albania 74 Malawi 15Mexico 96 Tanzania 74 Algeria 0New Zealand 96 Morocco 70 Angola 0Poland 96 Egypt 70 Azerbaijan 0Slovenia 96 Nicaragua 70 Bolivia 0Mongolia 93 Philippines 67 Cameroon 0Sri Lanka 93 Argentina 67 Chad 0Brazil 93 Norway 63 Costa Rica 0Sweden 93 Papua New Guinea 56 Ghana 0Hrvatska 89 Bangladesh 56 Indonesia 0Kazakhstan 89 Georgia 52 Nigeria 0Russia 89 El Salvador 48 Uganda 0United Kingdom 89 Burkina Faso 48 Vietnam 0Czech Republic 89 Nepal 44

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Open Budget Index:Mid-Year Review

Slovenia 100 Cameroon 25 Ecuador 0South Africa 100 Philippines 25 El Salvador 0France 92 Egypt 17 Guatemala 0New Zealand 92 Sri Lanka 17 Honduras 0Norway 92 Zambia 17 Jordan 0United Kingdom 92 Nepal 8 Kazakhstan 0United States 92 Albania 0 Kenya 0Indonesia 83 Algeria 0 Malawi 0Peru 83 Angola 0 Mongolia 0Czech Republic 83 Argentina 0 Morocco 0Georgia 67 Azerbaijan 0 Nicaragua 0Mexico 67 Bangladesh 0 Nigeria 0Namibia 67 Bolivia 0 Papua New Guinea 0Russia 67 Botswana 0 Romania 0South Korea 67 Brazil 0 Sweden 0India 50 Bulgaria 0 Tanzania 0Ghana 42 Chad 0 Turkey 0Burkina Faso 42 Colombia 0 Uganda 0Poland 33 Costa Rica 0 Vietnam 0Pakistan 33 Hrvatska 0

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Open Budget Index:Year-End Report

Slovenia 100 Costa Rica 50 Sri Lanka 20France 97 Russia 50 Albania 20South Africa 93 Botswana 47 Namibia 20Poland 90 Bolivia 40 Kazakhstan 17South Korea 87 Honduras 40 Mongolia 10United Kingdom 87 Zambia 40 Ecuador 7Brazil 83 India 37 Morocco 7Sweden 83 Colombia 37 Nepal 7New Zealand 80 Chad 33 Vietnam 7Czech Republic 77 Hrvatska 33 Papua New Guinea 3United States 77 Burkina Faso 30 Azerbaijan 0Peru 73 El Salvador 30 Bangladesh 0Romania 73 Algeria 30 Cameroon 0Norway 70 Jordan 30 Ghana 0Bulgaria 63 Georgia 27 Malawi 0Mexico 60 Argentina 27 Nigeria 0Egypt 57 Angola 23 Tanzania 0Indonesia 53 Guatemala 23 Turkey 0Kenya 53 Philippines 23 Uganda 0Pakistan 53 Nicaragua 20

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Open Budget Index:Auditor’s ReportNew Zealand 100 Mexico 67 Honduras 17Philippines 100 Peru 67 Algeria 0Poland 100 Brazil 67 Angola 0Slovenia 100 Pakistan 58 Argentina 0South Africa 100 Sri Lanka 58 Azerbaijan 0Sweden 100 Tanzania 58 Bangladesh 0United States 100 Indonesia 58 Burkina Faso 0Hrvatska 92 Nepal 58 Cameroon 0France 92 Jordan 58 Chad 0Norway 92 Romania 50 Ecuador 0South Korea 92 Kenya 50 Egypt 0United Kingdom 92 Costa Rica 50 El Salvador 0India 83 Georgia 50 Ghana 0Russia 83 Uganda 50 Malawi 0Colombia 83 Zambia 42 Morocco 0Mongolia 83 Albania 33 Nicaragua 0Guatemala 75 Bolivia 25 Nigeria 0Botswana 67 Namibia 25 Papua New Guinea 0Czech Republic 67 Turkey 25 Vietnam 0Kazakhstan 67 Bulgaria 17

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The History of Budget Process in Slovenia

- 1991: budget included the elements of a law- Mid 1990’s: Budget Implementation Act- 1999 - New Public Finance Act

- MFERAC – control over the budget implementation and unified accounting (1998)

- Economic Classification (GFS, 1999)- Functional Classification (COFOG, 2000)- Program Classification (2000)- Institutional Classification (2000)- Two-year budget (2001)- “Top down” approach for budget preparation (2002)- APPrA – application for budget preparation (2002)- SAPPra – web application for preparing financial plans (of individual

ministries) (2003)

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Summary

- Slovenia is well positioned

- In several cases a document is available to the public but not regarded as “budget document” according to the Questionnaire (Bulletin of Government Finance, Data on Government Debt and Guaranties)

- There is no Citizen Budget

- Performance indicators - much to be done