Pandemic did not undo accountable budgeting practices worldwide survey finds

The International Budget Partnership (IBP) unveiled its latest Open Budget Survey, which found that most countries preserved accountable spending practices in their annual budget processes during the pandemic. The Dominican Republic has entered the top 10 performers in advancing and institutionalizing transparency. South Korea is spearheading inclusive practices for public consultation in the budget process. Benin, Nigeria, and the Gambia are among the biggest improvers.

“Accountability systems are still weak overall, but several countries are showing that where there is political will, progress is possible,” said Anjali Garg, head of the Open Budget Survey. “Open budget practices are a winning proposition–they build public trust that governments can deliver and can lead to lower borrowing costs when global debt and inequality are at an all-time high. We hope more countries will be encouraged to open their budget process to public consultation and scrutiny to ensure scarce resources reach those most need them.”

Surprisingly, the pandemic did not undo hard-fought gains in transparent and accountable budgeting practices worldwide. Most countries could maintain and, in some cases, build on earlier gains in their annual budget processes, thanks to the increased digitalization of information and the institutionalization of accountability practices.

The average transparency score has increased by more than 20 percent since 2008. Eastern Europe and Central Asia, East Asia and the Pacific, Latin America and the Caribbean, and Sub-Saharan Africa have made significant strides in transparency since 2008. The survey found that legislative oversight has declined due to political unrest, the pandemic, and executive overreach. Some executive governments have found ways to undermine Supreme Audit Institutions while staying within the boundaries of the law.

Less than a third of countries provide sufficiently detailed information to understand how their budget addresses poverty; only 14 percent present their expenditures by gender. Only eight countries worldwide have formal channels to engage underserved communities in budget processes. “We need an all-hand-on-deck approach so that everyone has a say in how and how much public money is collected, borrowed, and spent,” said Vivek Ramkumar, senior policy director for IBP. “Reform-minded countries and donors must invest in fiscal accountability systems that empower key government agencies, legislators, national auditors, civil society groups, and the public to ensure public funds are managed effectively and equitably. We are heartened to see the progress that Nigeria and other countries have made in the survey,” said Austin Ndiokwelu, Nigeria’s country manager for IBP. “Inclusion pays dividends. We urge governments to sustain progress and engage communities more meaningfully around their revenue and spending priorities. Community feedback can help governments better manage vital public resources.”

The Open Budget is the world’s only comparative, independent, and regular assessment of transparency, oversight, and public participation in public budgets in 120 countries.

IBP.