MONROVIA – Liberia has ranked high over Nigeria, São Tomé e Príncipe, Equatorial Guinea and the Gambia but has fallen to Ghana and Sierra Leone in a global open budget survey conducted in Liberia by the Instituted for Research and Democratic Development (IREDD).
São Tomé e Príncipe at 24, while Nigeria is at 21, Equatorial Guinea 5 and Gambia 4.
The Open Budget Survey (OBS) is the world’s only independent, comparative and fact-based research instrument that uses internationally accepted criteria to assess public access to central government budget information; formal opportunities for the public to participate in the national budget process; and the role of budget oversight institutions such as the legislature and auditor in the budget process.
The survey helps local civil society assess and confer with their government on the reporting and use of public funds. This 7th edition of the OBS covers 117 countries. The survey looks at public access to information on how the central government raises and spends public resources.
The Survey 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. A transparency score of 61 or above indicates a country is likely publishing enough material to support informed public debate on the budget. Liberia has a transparency score of 38 (out of 100).
Liberia’s transparency score of 38 in the Open Budget Survey (OBS) 2019 is near its score in 2017.
What changed in OBS 2019?
Liberia has increased the availability of budget information by: How comprehensive is the content of the key budget documents that Liberia makes available to the public? Key budget document purpose and contents Fiscal Year assessed Document content score Pre-Budget Statement Discloses the broad parameters of fiscal policies in advance of the Executive’s Budget Proposal; outlines the government’s economic forecast, anticipated revenue, expenditures, and debt.
the survey which takes into consideration the fiscal year 2018-19, states that the government Published Late Executive’s Budget Proposal Submitted by the executive to the legislature for approval; details the sources of revenue, the allocations to ministries, proposed policy changes, and other information important for understanding the country’s fiscal situation.
2018-19 Published Late In-Year Reports Include information on actual revenues collected, actual expenditures made, and debt incurred at different intervals; issued quarterly or monthly.
Public Participation
The Open Budget Survey report also pointed out that transparency alone is insufficient for improving governance and that Inclusive public participation is crucial for realizing the positive outcomes associated with greater budget transparency.
“The OBS also 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. Liberia has a public participation score of 6 (out of 100).
Budget Oversight
The OBS also 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 Liberia, together, provide limited oversight during the budget process, with a composite oversight score of 48 (out of 100). Taken individually, the extent of each institution’s oversight is shown below:
“Weak: 0 – 40; limited: 41 – 60; adequate: 61 – 100 Recommendations Liberia’s Legislature provides limited oversight during the planning stage of the budget cycle and weak oversight during the implementation stage.
“To improve oversight, the following actions should be prioritized: The legislature should debate budget policy before the Executive’s Budget Proposal is tabled and approve recommendations for the upcoming budget. Legislative committees should examine the Executive’s Budget Proposal and publish reports with their analysis online. A legislative committee should examine in-year budget implementation and publish reports with their findings online. Legislative oversight 0 42 100 limited Audit oversight 0 61 100 adequate.
In its recommendations, the Organizations wants; Government Publish the Pre-Budget Statement, Citizens Budget, In-Year Reports, and Mid-Year Review online in a timely manner. They also want government to Produce and publish the Audit Report online in a timely manner. Include in the Executive’s Budget Proposal debt and macroeconomic information.
“This includes publishing interest payments on the outstanding debt and estimated total debt burden at the end of the year, as well as publishing the composition of total debt (e.g., interest rates on the debt, the maturity profile of the debt, and whether the debt is domestic or external). This also includes publishing information on the macroeconomic forecast upon which the budget projections are based.”
The survey also pointed out that Liberia’s Ministry of Finance and Development Planning has established public consultations during budget implementation but, to further strengthen public participation in the budget process, they should also prioritize the following actions:
Pilot mechanisms to engage the public during budget formulation. Expand mechanisms during budget implementation that engage any civil society organization or member of the public who wishes to participate.
Actively engage with vulnerable and underrepresented communities, directly or through civil society organizations representing them. Liberia’s Legislature has established public hearings related to the approval of the annual budget, but should also prioritize the following actions:
Allow any member of the public or any civil society organization to testify during its hearings on the budget proposal prior to its approval. Allow members of the public or civil society organizations to testify during its hearings on the Audit Report.
Liberia’s General Auditing Commission should prioritize the following actions to improve public participation in the budget process: Establish formal mechanisms for the public to assist in developing its audit program and to contribute to relevant audit investigations.
