PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
Murray Petrie
Lead Technical Advisor, GIFT
GIFT-OGP Fiscal Openness Working Group,
México, 28 October 2015
petrie@fiscaltransparency.net
#FiscalTransparency
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
WHY a new set of principles on fiscal transparency
and public participation?

Post-GFC: renewed emphasis on fiscal transparency
and participation
accountability

Going beyond disclosure to direct public participation:
 Participation a right of citizens.
 To improve quality of policy design and implementation.

GIFT High Level Principles endorsed by UN General Assembly 2012:
 High Level Principle 10: public participation in fiscal policy is a right
of citizens

Need systematic and practical approach on public
participation (case studies, review, workshops, Principles, Good Practices,
measurement instruments)
2
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
GIFT High Level PRINCIPLE 10
Citizens should have the right and they, and all non-state actors, should
have effective opportunities to participate directly in public debate and
discussion over the design and implementation of fiscal policies.
3
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
SCOPE of PUBLIC PARTICIPATION in fiscal policy
•
Invited v autonomous participation
•
Covers all fiscal policy and budget making activities:
 The annual budget cycle (8 documents)
 Fiscal policy reviews and new policy initiatives outside the annual budget cycle
(revenues, expenditures, financing, asset, liability management)
 The design and delivery of public services
 The planning, appraisal & implementation
of public investment projects
4
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
GIFT Case Studies of Public Participation in Fiscal Policy
 Three initial studies: Brazil, Philippines, South Korea
 Five more studies recently completed:
o Canada
o Croatia
o Kenya
o Mexico
o South Africa
Download all the #CaseStudies:
www.fiscaltransparency.net
5
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
Some country EXAMPLES of public participation: the EXECUTIVE
Stage in budget or
fiscal policy cycle
Country examples
Pre-budget
Canada; Kenya; Korea; Philippines
National planning
New policies
Budget implementation:
- Revenues
- Public service delivery
- Procurement
- Evaluation
Brazil
Brazil; Canada; Croatia
6
Countries in EITI
Kenya; Mexico; South Africa
Croatia; Kenya; Countries in CoST
Canada; Korea
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
Examples of participation: LEGISLATURE
Stage in legislative cycle
Country examples
Annual budget deliberation and enactment
Canada; Croatia; Kenya; Korea;
South Africa
Spending Bills
Canada; Croatia
Annual Budget Review
Croatia
7
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
Examples of public participation:
SUPREME AUDIT INSTITUTION
Stage in audit cycle
Country examples
Audit planning
Korea; Mexico
Conducting audits
Mexico; Philippines
Review of audit reports
Croatia
Audit follow-up
Argentina;
India (Andhra Pradesh);
South Africa (Eastern Cape)
8
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
Structure of the Draft Public Participation Principles and Practices
1
Introduction
2
Scope
3
Principles of public participation
4
Practices: the principles in action
9
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
PRINCIPLE 1
Participation should be Inclusive
Ensuring inclusiveness and non-discrimination through the proactive use of multiple mechanisms to reach and facilitate inputs
from all citizens, including traditionally excluded groups, without
discrimination as to political or other opinions, gender, ethnicity,
religion, caste, citizenship, nationality or domicile.
Example: Kenya’s pre-budget consultations
10
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
PRINCIPLE 2
Participation should be Direct
Encouraging the public to speak for itself: although there may be
groups and mechanisms that are given standing to speak on behalf
of others, individuals and communities should be allowed and
encouraged to articulate their interests in their own ways, and to
choose means of expression that they prefer.
Examples: engagement via internet,
supplemented by oral or written submissions, in-person meetings of
various types
11
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
PRINCIPLE 3
Participation should be Open
Ensuring openness about the purpose, intended
outcomes, process, and timelines of public participation.
Example: Open Government Partnership Guidelines for
development of National Action Plans:
http://www.opengovpartnership.org/sites/default/files/attac
hments/OGP_actionplan_guide%20FINAL.pdf
12
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
PRINCIPLE 4
Participation should be Timely
Allowing sufficient time in the budget and policy cycles for the public to
provide inputs at each phase.
Example: adequate notice of opportunities for engagement on PreBudget Statement, Budget Proposal, End of Year Report, Annual
Reports of Ministries
13
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
PRINCIPLE 5
Participation should be Facilitated
Facilitating and supporting public participation in general by
disclosing fiscal information and data in formats and using
mechanisms that are easy to access and to understand and that
are designed to facilitate participation.
Examples: translation into multiple languages as relevant; Citizen’s
Guides; open data formats.
14
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
PRINCIPLE 6
Participation should be Well-informed
Ensuring well-informed participation through providing specific
background information and other tailored information, highlighting
and informing key policy choices and trade-offs, and incorporating a
diversity of perspectives, in a timely and accessible manner prior to
consultation.
Example: public consultation on location of
new public infrastructure projects.
15
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
PRINCIPLE 7
Participation should be Meaningful
Ensuring meaningful participation by consulting early while
options still open, allowing for more than one round of
engagement, using an appropriate mix of participation
mechanisms, considering public inputs on an objective basis,
and providing feedback on the inputs received and how they
have been incorporated in official policy
or advice.
Example: ‘Green’ and ‘White’ Papers
16
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
PRINCIPLE 8
Participation should be On-going
Engaging in on-going and regular consultations and deliberation to
increase knowledge sharing and mutual trust over time, and
institutionalizing public participation where appropriate and
effective.
Examples: laws or regulations requiring public engagement
Tax Administration Review Tribunals
Parent representation on school boards
17
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
PRINCIPLE 9
Participation should be Complementary
Ensuring that mechanisms for participation complement and
support existing accountability systems and not establish parallel
systems.
Examples: public submissions to Legislative Committees
considering the budget or reviewing budget implementation.
18
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
PRINCIPLE 10
Participation by non-state actors should be Open
Non-state actors should be open about their mission, the
interests they seek to advance, who they represent, and should
be aware of the public interest in the use of public resources.
Example: International NGO Charter:
http://www.ingoaccountabilitycharter.org/
19
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
Measuring public participation in fiscal policy:
supplementary PEFA INDICATOR
 PEFA is being revised: GIFT suggested additional public participation elements be built into
a number of PEFA indicators.
 The result was agreement to trial a supplementary indicator on participation, subject to
agreement of the country authorities and the PEFA assessment team.
 Currently being trialled in the Philippines as part of the PEFA assessment.
 GIFT will also develop a more comprehensive measurement instrument.
20
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
Pilot supplementary PEFA indicator
on public participation in fiscal policy
One indicator covering four dimensions:
1. Public participation across the annual budget cycle:
Budget preparation and Legislative approval.
2. Public participation in the design and delivery of public services (two of largest sectors).
3. Public participation in the appraisal and implementation of public investment projects
(sample of largest projects).
4. Public participation in oversight processes
(legislative review, and Supreme Audit).
21
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
Issues for Discussion
1.
What are the main opportunities to expand public participation in fiscal policy at
the national level?
2.
What are the main constraints?
3.
What are your views on the draft GIFT Public Participation Principles?
22
PUBLIC PARTICIPATION IN FISCAL POLICY:
Draft GIFT Principles
Sources of Information
 GIFT public consultation (to end October) on the draft participation principles:
bit.ly/1JYU1Qr
 Public Participation in Fiscal Policy: The Next Frontier of Budget Transparency:
bit.ly/1JCP01U
 GIFT country case studies of public participation in fiscal policy:
www.fiscaltransparency.net/resources/
23
Engage with us:
fiscaltransparency.net
@FiscalTrans