Trinidad and Tobago has received a score of seven out of 100 for public participation in the national budget, according to the latest Open Budget Survey.
The Open Budget Survey ranks countries according to their level of accountability in national budget processes.
It is the world’s only comparative, independent and regular assessment of transparency, oversight and participation in national budgets in 120 countries.
A transparency score of 61 out of 100 for public participation is said to be adequate.
The OBS assesses the formal opportunities offered to the public for meaningful participation in the different stages of the budget process.
It examines the practices of the central government’s executive, the legislature, and the supreme audit institution (SAI) using 18 equally weighted indicators, aligned with the Global Initiative for Fiscal Transparency’s Principles of Public Participation in Fiscal Policies, and scores each country on a scale from 0 to 100.
According to OBS, advisory councils have been established to provide input during the formulation of the budget but, to further strengthen public participation in the budget process, Trinidad and Tobago should also prioritise actively engaging with vulnerable and under-represented communities, directly or through civil society organisations representing them.
In addition to this it recommended pilot mechanisms be introduced to monitor budget implementation, as well as expand mechanisms during budget formulation to engage any civil society organisation or member of the public who wishes to participate.
It also recommended the provision of feedback on budget proposals that are informed through public consultations.
The OBS stated that T&T’s Parliament has established public hearings related to the approval of the annual budget and public hearings related to the review of the Audit Report, but should also prioritise allowing any member of the public or any civil society organization to testify during its hearings on the budget proposal prior to its approval.
It also recommended that any member of the public or any civil society organisation be allowed to testify during its hearings on the Audit Report.
It stated that T&T’s Office of the Auditor General should prioritise the establishment of formal mechanisms for the public to assist in developing its audit program and to contribute to relevant audit investigations to improve public participation in the budget process.
Apart from public participation, the OBS also ranks countries based on transparency and budget oversight.
Transparency
“This part of the OBS measures public access to information on how the central government raises and spends public resources. It assesses the online availability, timeliness, and comprehensiveness of eight key budget documents using 109 equally weighted indicators and scores each country on a scale of 0 to 100,” it stated.
A transparency score of 61 or above indicates a country is likely publishing enough material to support informed public debate on the budget.
T&T received a transparency score of 34 out of 100.
T&T is said to have increased the availability of budget material by publishing the Mid-Year Review online.
To improve budget transparency, the OBS has stated that T&T should prioritise producing and publishing the Pre-Budget Statement, Citizens Budget, In-Year Reports and Year-End Report online in a timely manner.
It also called for the inclusion of more information in the Executive’s Budget Proposal on multi-year expenditure and revenue estimates,the macroeconomic forecast upon which budget projections are based, and details on how new policy proposals will affect revenues and expenditures.
“Improve the comprehensiveness of the Enacted Budget by providing expenditure estimates by program for the fiscal year, revenue estimates by category (i.e.,tax vs. non-tax) and individual source, and information on government borrowing and debt,” it stated.
“Improve the comprehensiveness of the Mid-Year Review by providing updated expenditure estimates by economic and functional classification, updated expenditure estimates by individual program, and updated revenue estimates by category and individual source,” the OBS stated.
Budget oversight
The OBS examines the role that legislatures and supreme audit institutions (SAIs) play in the budget process and the extent to which they provide oversight; each country is scored on a scale from 0 to 100 based on 18 equally weighted indicators.
In addition,the survey collects supplementary information on independent fiscal institutions.
“The legislature and supreme audit institution in T&T ,together, provide weak oversight during the budget process, with a composite oversight score of 35 out of 100,” it stated.
Legislative oversight was ranked at 25 out of 100 while Audit oversight was 56 out of 100.
According to OBS T&T’s Parliament provides weak oversight during the planning stage of the budget cycle and weak oversight during the implementation stage.
To improve oversight, it stated Parliament should debate budget policy before the executive’s budget proposal is tabled and approve recommendations for the upcoming budget.
It also stated that the executive’s budget proposal should be submitted to legislators at least two months before the start of the budget year.
“Legislative committees should examine the executive’s budget proposal and publish reports with their analysis online,” it stated.
“In practice, ensure Parliament is consulted before the executive shifts funds specified in the enacted budget between administrative units; spends any unanticipated revenue; or reduces spending due to revenue shortfalls during the budget year,” it stated.
THE OBS stated that a legislative committee should examine the Audit Report and publish a report with their findings online.
“To strengthen independence and improve audit oversight by T&T’s Office of the Auditor General, the OBS recommended that legislative or judicial require approval to appoint the head of the Office of the Auditor General,” it stated.
It also recommended that audit processes be reviewed by an independent agency.