Kathmandu: Various actors and stakeholders working in budgetary reforms have emphasized the robust role of oversight agencies coupled with maximum disclosure of budget information and opportunities for citizen engagement in the budget process.
At a multi-stakeholders dialogue ‘Budget Transparency in Nepal: Issues for Reforms’ organized by Freedom Forum in Kathmandu, speakers expressed concerns over the weak role of oversight agencies in budget accountability.
Auditor General Toyam Raya lamented on sheer negligence on discussion over the annual reports in the parliament since 2055 BS. He pledged to widen the space of citizen engagement in the audit process and put efforts to address grievances to be received from citizens and concerned agencies on audits.
The Auditor General also recommended specific discussions on the annual audit findings and recommendations in terms of ministry and agency for budgetary reforms. He also highlighted the need to amend 200 existing laws for budget transparency and accountability.
Secretary at the Federal Parliament Sudarshan Khadka laid emphasis on parliamentary control over budget in the Westminster system of governance “Only disclosure of budget documents and information does not enhance accountability”, he said, adding the budget should be prepared in wider consultation with the people at large.
He called for civil society organizations and media to continue dialogue on budget issues in tandem with parliament to change the existing mindset that ‘budget is of executives’.
Public Finance Management (PFM) expert Suresh Pradhan said the long-held narrative on the budget as the affairs of the Ministry of Finance and some economists has been changed with initiatives from CSOs and development actors.
He called for the media to report the budgetary issues in all six stages of the budget cycle from planning to external audit.
Pradhan also lamented on the ignorance towards the compliance of seven-step planning process at the local level which he claimed has brazenly shrunk civic space in budget.
Ministry of Finance representative Nirmal Dhakal highlighted the need to revise our budget laws and documents to benefit the citizens in compliance with the allocation efficiency, value for money and fiscal discipline.
“Establishing mechanisms and systems alone has not improved our accountability. Our overall budget system does not stick to the real absorbing capacity while formulating a budget which has created a challenge in accountability”. He stressed the need to raise a strong voice for promoting shared accountability of political and bureaucratic mechanisms.
Senior economic journalist Gajendra Budhathki said budget is the cumulative legal documents comprising five laws, including appropriation act and economic act but generally our decision-makers understand budget as a budget speech presented by the Finance Minister every year on Jeth 15 in the Lunar Calendar.
“There is an urgency of rolling out budget literacy to the law-makers and policy makers”, he said, adding there is almost no budget discussion in the parliament, especially in the finance committee.
He recommended parliaments of all tiers—federal, provincial and local to set up a regulatory mechanism to oversee budget execution.
As 34 percent of the total budget goes to the sub-national governments, there needs robust checks and balances for budgetary accountability.
Former Deputy Auditor General Maheshwor Kafle said the national laws should include arrangements of ownership, participation and oversight to improve budget efficiency and credibility.
Executive Director of National Campaign for Sustainable Development Nepal Daya Sagar Shrestha called for improving coordination between the three-tiers of governments to avert duplication and overlapping in planning and budgeting and make oversight by parliament, CSOs and media on budget functional.
Programme Coordinator of National Association of Rural Municipalities Nepal (NARMIN) Pratigya Neupane stressed the need of GESI consideration in framing budgets in all tiers of the governments.
CSO leader Kedar Khadka called for Public Accounts Committees to routinely discuss the audit reports for reforms. “The OAG report should also cover the ignorance in the practice of the seven-step planning process at the local level for accountability purposes”.
Budget researcher Anirudra Neupane called for including macroeconomic data and projection of impacts on economic and fiscal landscape in the pre-budget statement – one of the key budget documents assessed in the open budget survey.
Local governance expert Lekhnath Pokharel demanded consistency on medium-term expenditure framework, annual policy and programme, plan and budget as well as the fair role of the OAG for systemic budgetary reforms.
Open Budget Survey-2023 findings presented
Nepal’s Open Budget Survey (OBS) findings and recommendations were presented and discussed on the occasion. On the occasion, Freedom Forum Executive Chief Taranath Dahal presented the OBS findings highlighting gaps in budget transparency in Nepal.
Noting that Budget is a crucial part of the social contract between the state and the citizens, he said budget transparency is the core issue of good governance and the center of democracy and development.
The OBS 2023 has revealed that Nepal has improved its budget transparency score to 50, higher than the global average of 45 out of 100. Nepal scored 31 in public participation in the budgetary process, significantly higher than the global average of 15. However, the country scored 36 in legislative oversight, below the global average, while the Supreme Audit Institution (SAI) oversight score of 67 exceeded the global average.
Despite this improvement, Nepal’s budget transparency score falls short of the minimum threshold score of 61, necessary to foster an informed public debate on fiscal policies and practices, according to the OBS summary.
Nepal now ranks 59th out of 125 countries surveyed in 2023 based on the International Budget Partnership’s (IBP) latest Open Budget Survey.
The overall results indicate an improvement in public access to budget information in Nepal. “Despite advocacy efforts from civil society organizations and media, Nepal has not yet produced and made publicly available the Pre-Budget Statement (PBS) and Citizen Budget,” Dahal added, citing the report.
Also speaking on the occasion, other speakers underscored the need to continue piling constructive pressure for budget system reforms.
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