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Towards Budget Transparency In Nepal

  2 min 50 sec to read

--By Anirudra Neupane
 
According to bi-annual open budget survey (OBS) on budget transparency of International Budget Partnership (IBP), Nepal’s budget transparency situation is below average. Availability, accessibility and timeliness of budget information are key indicators of budget transparency. OBS report for 2012 says Nepal does not produces two of the eight key budget documents. Key eight budget documents include pre-budget statement, executive’s budget proposal, citizens’ budget, enacted budget, in-year reports, mid-year review, annual report and the audit report. Nepal produces six of the eight key budget documents but lacks pre-budget statement and citizens budget. 
 
 Pre-budget statement is the policy outline for the government’s budget proposal. Priorities of the government, major programmes and projects and tentative weightage given to each programmes by the amount of budget are the important components of pre-budget statement. It is a policy guideline for coming year’s budget. Citizens budget is the non technical presentation of budget proposal so as to make general people understand the main features of government budget. According to IBP, lack of these two documents has limited the opportunity for people to participate in the Nepal’s budget process.
 
There are several areas for improvements on comprehensiveness of existing 6 budget documents. These documents have limited outreach. They are in many cases produced but not timely released. On the other hand role of oversight agencies i.e. parliament and supreme audit institution has also not been utilized to promote public scrutiny on the budget process. 
 
Because of these reasons, Nepal’s open budget index has been only 44 in 2012. It was 43 in 2008 and 45 in 2010. Thus IBP has strongly recommended Nepal to undertake following steps:
•Produce and publish a pre-budget statement and citizen budget
•Increase the comprehensiveness of executive budget proposal
• Increase comprehensiveness of in-year report
• Increase comprehensiveness of year-end report
•Increase comprehensiveness of audit report
• Hold consultations with a range of legislators in the process of determining budget priorities
•Legislature should have a specialized budget research office 
• Expand public engagement in budgeting 
 
Government should also prepare and publish indexes (inventory) of all budget related documents. The government should give concrete shape to pre-budget discourse by producing and publishing pre-budget statement at least before 30 days of publishing executive’s budget proposal as per international standard. And citizens’ budget should be published with executive’s budget proposal.
 
Demystification of budget document should not be limited to formality. The government should increase comprehensiveness of key budget documents. In order to inform people, the government should build collaboration between government agencies and civil society, particularly budget advocacy groups.
 
Lip service is not enough to ensure budget openness in the country. The government should ensure transparency by preparing budget openness friendly law and policies. The government should consider incorporating all relevant suggestions while drafting fiscal transparency bill because no one has the right to misuse the tax money. 
 
(Writer has been conducting research on Public Financial Management in Nepal)

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