5.3. Budget transparency
Budget transparency refers to the full disclosure of relevant fiscal information in a timely and systematic manner. Although countries might have different budget reporting systems, increasing the level of transparency throughout the budget process (preparation, approval, execution and audit) is essential for upholding public sector integrity and increasing the participation of citizens and non-government organizations in the budgetary process. Openness and transparency can ultimately lead to better public sector performance by facilitating citizen monitoring of governments and minimising the inappropriate and inefficient use of public resources. Levels of budgetary transparency are influenced by the existence of legal requirements and governments’ disposition towards sharing information, among other aspects.
According to survey results, key budgetary information such as the pre-budget statement, the medium-term expenditure framework (MTEF), the approved budget, implementation reports, financial statements and any supplementary budget are widely published in the Western Balkan region. Bosnia and Herzegovina and Montenegro are the only two countries in the region that do not produce a report on fiscal risks. In turn, no countries in the region prepare long-term fiscal sustainability reports; these reports are published in 53% of OECD-EU and 45% of OECD countries, and are important as they contribute to identifying probable future expenses in light of forecasted demographic and economic developments, and can contribute to the political discussion of a broader reform agenda.
Releasing budgetary information in open data formats and publishing citizens’ guides to the budget contribute to enhancing budget transparency by allowing stakeholders to access and understand key fiscal information. All governments of the Western Balkans publish a citizen’s guide to the budget and release information in an open data format; however, the breadth and scope of the information published varies. In the majority of the Western Balkans, the citizens’ guide to the budget includes primarily the approved budget, a practice observed by half of OECD countries and 41% of OECD-EU countries.
In general terms and across the three groups of countries and economies under study it is most common for budgetary information to be published in open data format. In addition to the approved budget and complementary budgets, most Western Balkans publish their execution reports, financial statements and MTEFs. In turn, only Albania and Montenegro reported publishing in open data format the pre-budget fiscal policy statement. These statements are key as they lay out the macroeconomic assumptions, revenue and expenditure levels, debt and deficit limits, etc. and are therefore an opportunity for relevant stakeholders to analyze these assumptions and use the findings to influence the parameters of the proposed budget. Similarly, these are not widely published in OECD and OECD-EU countries as only less than 20% release them in open data format.
Data were collected through the 2019 Survey for the Western Balkans on Budget Practices and Procedures. The survey was completed in 2019 in the Western Balkans – Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia. The data for Bosnia and Herzegovina, reflect the consolidated response submitted by the State level, based on individual responses received from different levels of administration – the State level, the Entities and Brcko District. Data for OECD countries are derived from the 2018 OECD Budget Practices and Procedures Survey. Respondents were predominantly senior budget officials. Unless specified otherwise responses refer to central/federal government.
Open data refers to digital data that are made available with the technical and legal characteristics necessary for it to be freely used, re-used and redistributed by anyone, anytime, anywhere.
A citizens’ guide is an easy-to-understand summary of the main features of the annual budget or other budget-related documents. A user-friendly summary helps the general reader to make sense of the technical information and avoids technical language.
Further reading
OECD (2019), Budgeting and Public Expenditures in OECD Countries 2019, OECD Publishing, Paris, https://doi.org/10.1787/9789264307957-en
Kim, S., J. Lee and J. Lee (2018), “Citizen participation and public trust in local government: The Republic of Korea case”, OECD Journal on Budgeting, vol. 18/2, https://doi.org/10.1787/budget-18-5j8fz1kqp8d8
OECD (2017), OECD Budget Transparency Toolkit: Practical Steps for Supporting Openness, Integrity and Accountability in Public Financial Management, OECD Publishing, Paris, https://doi.org/10.1787/9789264282070-en
Figure notes
Data for the United States is not available.
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