Mongolia Open Budget Index

by Mongol

Mongolia’s score on the Open Budget Index shows that the government provides the public with minimal information on the central government’s budget and financial activities during the course of the budget year.

This makes it quite difficult for citizens to hold the government accountable for its management of the public’s money, the Open Budget Initiative, a global research and advocacy program which aims to promote public access to budget information and the adoption of accountable budget systems, concluded in its February 2 report.

A total of 85 countries were included in the index. Mongolia received 36 percent of the total possible points. The Open Budget Index evaluates the quantity and type of information available to the public in a country’s budget documents. Mongolia’s placement within a performance category was determined by averaging the response to 91 questions on the Open Budget Questionnaire related to information contained in the eight key budget documents that all countries should make available to the public.

The report stated: Mongolia’s score on the Open Budget Index reveals its government provides the public with minimal information on the central government’s budget and financial activities during the course of the budget year. This makes it quite difficult for citizens to hold the government accountable for its management of the public’s money.

The Open Budget Index 2008 evaluates the quantity and type of information that governments make available to the public by examining the seven key budget documents that should be issued every budget year. One of the most important documents is the executive’s budget proposal. It should contain the executive’s plans for the upcoming year along with the cost of the proposed activities.

The proposal should be available to the public and to the legislature prior to being finalized, at least three months before the start of the budget year, in order to allow for sufficient review and public debate. In Mongolia, the proposal provides incomplete information to the public. For example, it does not include multi-year estimates of aggregate revenues, expenditures or debt. This means citizens do not have a comprehensive picture of the government’s plans for taxing and spending for the upcoming year.

Moreover, it is difficult to track spending, revenue collection and borrowing during the year. Mongolia publishes its in-year reports but does not publish the mid-year review. Publishing the mid-year review would greatly strengthen public accountability, since it provides updates on how the budget is being implemented during the year.

It is also difficult to assess budget performance in Mongolia once the budget year is over. A year-end report is not published, preventing comparisons between what was budgeted and what was actually spent and collected. Also, Mongolia does not make its audit report public and does not provide any information on whether the audit report’s recommendations are successfully implemented. Access to the highly detailed budget information needed to understand the government’s progress in undertaking a specific project or activity remains limited.

Mongolia has not codified the right to access government information into law. Beyond improving access to key budget documents, there are other ways in which Mongolia’s budget process could be made more open. Opportunities for citizen participation in budget debates could be introduced. For example, the legislature does not hold hearings on the budget in which the public can participate.

The independence of Mongolia’s Supreme Audit Institution could be improved. For example, the SAI faces some limitations in its discretion to decide which audits to undertake.

by B.Bulgamaa
THE UB POST