ISODEC launches Global Open Budget Index report

Accra, Oct. 20, GNA- Ghana scored 54 points out of a total Budget transparency rating score on a 100-point scale in the 2010 Open Budget Survey (OBS), earning the country a grade "C" criteria, the highest ranking in West Africa.

The OBS which is an initiative of the International Budget Partnership (IBP) and produced bi-annually uses internationally recognised criteria to give each country a transparency score on a 100-point scale called the Open Budget Index (OBI).

The Survey report which is also being launched in 94 countries worldwide indicates that on the global front, 74 out of 94 countries assessed failed to meet basic standards of transparency and accountability when it comes to their national budgets, with the worst performers including China, Saudi Arabia, Equatorial Guinea, Senegal and newly Democratic Iraq, a situation which is found to be in sharp contrast in respect to their national incomes.

Dr. Yakubu Zachariah, Programme Director of the Integrated Social Development Centre (ISODEC), at the launch of the 2010 Global OBS report in Accra on Wednesday, said Ghana's OBI 2010 score of 54 is higher than the score of any other country surveyed in West Africa and higher than the worldwide average of 42.

He explained that in Ghana, the survey was conducted by ISODEC in partnership with the IBP to assess the adequacy and availability of eight key budget documents which include; the Pre-Budget Statement, the Executive's Budget Proposal, Enacted Budget, Citizen's Budget, In-Year Reports, Mid-Year Review, Year-End Report and the Audit report. It also examined the extent of effective oversight provided by legislatures and Supreme Audit Institutions (SAI) as well as the opportunities available to the public to participate in national budget decision-making processes.

Dr. Zachariah stated that 2010 survey is the third in the series since the year 2006 and witnesses an increase in the country's OBI performance from 42 in 2006 to 54 in 2010, largely because government now publishes a Mid-Year Review, a Year-End Report and an Audit Report. He however said Ghana's current score level shows that the government still have to improve upon the availability and accessibility of some information on its central budget and financial activities during the course of the budget year to enable the public to demand accountability of the management of public funds. He said though Ghana topped other countries in West Africa, Uganda overtook it by a lone score point, placing Uganda on a scale of 55 to earn it the highest score point in Africa, adding that Liberia which scored 40 has also made tremendous improvement from a score point of three since it's President made a personal pledge to oversee to an improvement in the country's score points as far as budget transparency was concerned.

Dr. Zachariah said Ghana would have scored higher marks if it had produced and published a Pre-Budget Statement which sets forth the broad parameters that defines the government's forthcoming budget, a Citizen's Budget which is a non technical presentation of a government's budget to ensure better public understanding of government's plans and In-Year Reports which provide a snapshot of the budget's effect during the year.

Dr. Zachariah said the report recommends that the government apart from improving the availability and comprehensiveness of key budget documents, must ensure the existence of a strong legislature and SAI that provides effective budget oversight and further ensure greater opportunity for the public to participate in the budget process of the country.

He said survey observed that budget oversight provided by Ghana's legislature was inadequate because it does not have sufficient time to discuss and amend the budget proposal presented to it at the start of the year before the actual budget is enacted and therefore limited time is allowed for public hearings to discuss the macroeconomic and fiscal framework.

Apart from the shortcomings of the legislature, the poor performance of Ghana's SAI oversight was also became obvious owing to the insufficiency of resources to meaningfully exercise its mandate, while the culture of issuing reports on its follow-up steps by the executive to address audit recommendations still remained a challenge. The report also called on government to improve upon the comprehensiveness of the Year-End Report which compares the actual budget execution to the Enacted Budget and inform policy makers on tax policies, debt requirement, and major expenditure priorities to facilitate modifications for upcoming budget years.

It recommended an improvement in the comprehensiveness of the Executive's Budget Proposals which is the government's most important policy instrument and presents the ways and means the government plans to raise revenues and where these funds are allocated, thus transforming policy goals into action.

He said the timely and regular publication of In-Year Reports, Citizen's Budget, Pre-Budget Statements would also provide an opportunity for the public to testify at legislative hearings on the budget for the individual administrative units and also enable the legislature and SAI to provide more effective oversight of the budget. Dr. Zachariah said the reports observed that governments could improve transparency and accountability quickly by publishing online all their budget information and by inviting public participation in the budget process and stressed that copies of the report would be handed over to all stakeholders including the Ministries of Local Government and Rural Development and Finance and Economic Planning for further discussion.

Ms Magdalene Kannae, Gender and Social Development Expert of the Institute of Local Government Studies, who chaired launch, advocated for Gender Responsive Budgeting in all sectors and the importance of publications of the Citizen's Budget in all readable forms such as in the various local languages as well as in Braille forms for the visually impaired to enhance public understanding and participation in budget processes. 20 Oct.10.