Enhancing Fiscal Transparency in Mongolia: Key Developments and Achievements
The fiscal transparency in Mongolia has seen significant progress with the introduction of key laws, initiatives, and reports aimed at ensuring accountability, participation, and effectiveness in budget management. The country's focus on transparency aligns with its vision of promoting public trust and efficiency in government operations, as highlighted in the Millennium Development Plan. Major developments include the Budget Law, improved budget transparency through websites and innovative measures, and positive assessments by the World Bank on Mongolia's Public Financial Management performance. Mongolia's efforts in enhancing fiscal transparency are essential for promoting good governance and public oversight.
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Fiscal Transparency in Mongolia
1. OVERVIEW OF FISCAL TRANSPARENCY
1.1. Vision on budget transparency Millennium development plan (CHAPTER 3 - Principles): Private sector: To carry out transparent and legal activities Government: To serve in the best interest of the public and be transparent in the operation Public: To monitor the Government operations and to be able to influence decisions
1.2. Major developments in budget transparency Budget Law Introduced to ensure fiscal stability and transparency, enhance the efficiency and predictability of resource allocation, and to increase citizens participation budgeting process Improving transparency (Mid-year budget review) New website for Budget Transparency /iltod.gov.mn/ Budget Comics for citizens /iltod.gov.mn/ in the 1990- 2008 2015 2016 2009 2010 2011 2014 Glass Account Law Fiscal Stability law Article 5. management principle: short and medium term fiscal policies strategic long term projections, contents enforcement shall be transparent Open platform for Budget information iltod.gov.mn/tusuv/ The purpose of this law is to make transparent budget management decision and processes and to create information system ("glass accounts") to enable public monitoring with the objective of efficient spending of state and local budget as well as state and local assets. Fiscal and objectives, trend their and
1.3. PFM-performance report (World Bank) Results: Fiscal and budget information is accessibleto the public Mongolia has made good progress in increasing the comprehensiveness of information included in the budget Public disclosure of fiscal information has been steadily increasing The IBL initiated significant fiscal decentralizationin Mongolia
1.3. PFM-performance report /Continued/ Indicators Score Explanation PI-6 comprehensiveness of information included in the budget (i) Share of the listed information in the budget documentation most recently issued by the central government Recent budget documentation fulfils 7-9 of the 9 information benchmarks A PI-8 Transparency of intergovernmental fiscal relations (i) Transparent and rules-based systems in the horizontal allocation Transfers that are based on transparent and rule-based mechanism accounted for 81.2% of total transfers, or more than 50% but less than 90% of all transfers. SN governments are provided reliable information on the allocations to be transferred to them before the start of their detailed budgeting processes Fiscal information (ex-ante and ex-post) that is consistent with central government fiscal reporting is collected for 90% (by value) of SN government expenditure and consolidated into annual reports within 10 months of the end of the fiscal year. B (ii) Timeliness of reliable information to SN governments on their allocations from central government A (iii) Extent to which consolidated fiscal data is collected and reported for general government according to sectoral categories A PI-24 Quality and timeliness of in-year budget reports (i) Scope of reports in terms of coverage and compatibility with budgetary forecasts Comparison of the budget is possible by administrative and economic classification. Expenditure is captured at the payment stage only. C Monthly reports are issued within ten days after the end of the month; quarterly reports are issued within two weeks after the end of the quarter. ii) Timeliness in the presentation of reports A (iii) Quality of the information Manual data entry and the lack of integration between the accounting and payment systems create some concerns about the quality of the data in the reports. These data issues are not highlighted in the reports. However, this does not compromise their basic usefulness. C
1.4. Open Budget Index Based on internationally accepted criteria and 109 distinct indicators, Mongolia has been assessed on its budget transparency since 2006. According to OPEN BUDGET SURVEY 2015, Mongolia has a score of 51.Public Participation has been identified as the weakest area scoring a low 19.
1.4. Open Budget Index /Continued/ Mongolia s score of 51 out of 100 is moderately higher than the global average score of 45. Improvements: Publishing the Citizens Budget Improving the comprehensiveness of the Year-End Report Inadequate Areas: Mid-year Review Executive s Budget Proposal
1.4. Open Budget Index /Continued/ RECOMMENDATIONS IMPROVING TRANSPARENCY 1. Mid year Review and Citizens budget 2. Comprehensiveness of the Executive s Budget proposal 3. Comprehensiveness of performance IMPROVING PUBLIC PARTICIPATION 1. Effective mechanism 2. Legislative hearings 3. Formal mechanisms for audit IMPROVING OVERSIGHT Public meetings to review audit reports
2. RECENT FISCAL REFORMS IN PUBLIC PARTICIPATION
2. Recent developments for Public participation MONGOLIA HAS BEEN MAKING PROGRESS IN THE FOLLOWING AREAS: Policy measures to increase public participation on budget discussion Availability of information (Glass Accounts law)
2.1. Increasing public participation in budget discussion PUBLIC PARTICIPATION IN LOCAL BUDGET Mongolia has introduced a mechanism for Public participation in the local budget in 2012. 1. Public discussion In practice, Public Ensuring community participation in the local budget process 2. Open survey and questionnaire participation in the local budget has been steadily increasing. 5. Approved budget Government of Mongolia is planning to implement a similar process for the State budget. 4. Budget proposal 3. Results
2.2. Availability of information (Glass Accounts law) To promote information accessibility and transparent budget To increase public participation and awareness of budget affairs To increase efficiency in the budget through monitoring Under President s initiative, Glass accounts law (Transparency) was submitted to the Parliament and was approved on July 11, 2014.
2.2 Availability of information (Glass Accounts law) All budget entities, fully and partly state and locally owned bodies dedicate a separate menu in their webpages named as GLASS ACCOUNT : The following information is disclosed in their webpages: Annual budgets, procurement plans and local development fund plans; Semi-annual and annual budget performance; Bid documents, bid procedures, tender/bid invitations, criteria for bidders, bid amount of grants and aids, and their allocation/expenditure
3. Concluding remarks MINISTRY OF FINANCE IS DEDICATED TO IMPROVE BUDGET TRANSPARENCY FOLLOWING ACTIONS: Carry out recommendations on budget transparency by international organizations (Such as PFM, Open budget reports etc.) AND WILL TAKE Improve and implement proper mechanism for public participation in budget discussion To maintain information availability and improve the coherency and accommodation to public
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