Fiscal Transparency in Mongolia: OGP NAP 2016-2018 Commitments
Explore the assessment of fiscal transparency in Mongolia and its commitments in the Open Government Partnership National Action Plan (2016-2018). The content includes results of the Open Budget Survey, Subnational Budget Transparency Survey, recommendations, and evaluations of budget transparency at subnational levels from 2011 to 2013.
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Fiscal Transparency in Mongolia and its Commitments in OGP NAP 2016-2018 Oyunbadam.D (Ph.D) Program Manager Open Society Forum 2016
Content Results of Open Budget Survey 2015 Subnational Budget Transparency Survey 2013 Commitments on Fiscal Transparency in OGP NAP 2016-2018 Recommendation on commitments on fiscal openness 2
Assessment of Subnational Budget Transparency 11
Assessment of Subnational Budget Transparency 2011 and 2013 Assessment of Subnational Budget Transparency 2011 To assess the transparency of budget information at subnational level Local governments of 21 provinces and the Capital city Ulaanbaatar 35 2013 Objective Scope Score (average, out of 100) 36 12
Subnational Budget Transparency 2013 Transparency of Budget Information (released in 2013) Budget Documents and processes Average score (0-100 %) 56 51 49 46 Budget Execution Reports for 2012 and 2013 2013 Investment and Procurement 2014 Enacted Budget Citizens Representative Khural Session for 2014 Executive s Budget Proposal 2013 Budget for Local Special Funds 2013 Budget Revision 2014 Local Development Fund Plan Reflection of budget transparency requirements in legal documents released by local governments 2013 Governor s Reserve Fund Donations and aids in 2013 and their spending 2014 Executive s Budget Proposal and its discussion Citizens Budget 1 2 3 4 5 6 7 8 43 42 39 39 9 30 17 15 1 10 11 12 13
Subnational Budget Transparency 2013 Subnational Budget Transparency Rating Score (0-100%) Provinces 1 Khuvsgul 55,3 2 Govisumber 52,4 3 Tuv 51,9 4 Dornogovi 48,9 5 Khovd 47,1 6 Uvs 46,4 7 Umnugovi 44,5 8 Ulaanbaatar 38,7 9 Khentii 37,1 10 Arkhangai 36,8 11 Bulgan 36,5 12 Darkhan-Uul 35,2 13 Dundgobi 34,5 14 Orkhon 32,1 15 Sukhbaatar 31,4 16 Dornod 29,3 17 Zavkhan 27,1 18 Uvurkhangai 27,0 19 Govi-Altai 26,7 20 Bayan-Ulgii 25,1 21 Selenge 18,3 14 22 Bayankhongor 15,0
Subnational Budget Transparency 2013 Main Findings Budget is not transparent at subnational level. Main causes of non-transparency: Functions for overseeing subnational budget transparency is not specified by present legislation. Accountability mechanism for non-transparency of budget information is not in place. Some improvements in transparency: Information on Enacted Budget and Citizens Representative Khural Session discussing Executive s Budget Proposal is becoming more transparent. Transparency of information on budget execution and procurement has relatively improved. 15
Subnational Budget Transparency 2013 Policy Recommendation Improve implementation of existing legislations related to subnational budget transparency. Create functions for overseeing subnational budget transparency. Establish accountability mechanism for non-transparency (including incompleteness and non-timeliness) of subnational budget information. Local governments reflect requirements for budget transparency in their legislative document. Enact standards for subnational budget transparency. Set requirement for archiving multi-year budget information online. 1. 2. 3. 4. 5. 6. 16
Mongolia OGP NAP 2016-2018 Commitments on fiscal transparency 1.To increase transparency of foreign loan and aid; 2.To disseminate information on online VAT registration system to public and companies; 3. To improve Public Budget Disclosure (Glass Account) System (The Law on Glass Accounts which came into force in January 2015 obliges all budget entities including state- owned enterprises to publish all transactions above US$2,500 with supporting documents.); and 4.To increase transparency of government procurement.
Recommendation on the commitments on fiscal openness to be included in NAP To increase the comprehensiveness of budget documents (to present expenditure estimates by functional classification (which indicates the programmatic purpose, sector, or objective for which the funds will be used) in the Executive s Budget Proposal, In-Year and Year-End Reports); To mandate the production and publication of Mid-Year Reviewwhich provides a detailed explanation of the state of the budget six months into the budget year. To publish the numerical data contained in budget documents in a machine readable format that can be easily processed by a computer (e.g., in Excel). To increase public engagement in the budget process, Mongolia should: ensure implementation of part on budget supervision hearing of the Law on Public Hearing adopted in 2015 and to raise public awareness of the Law; and keep allocating resources for projects to be implemented under the Local Development Fund (LDF). Currently, LDF is the only way where public are directly engaged in budget process in the country as local people vote for projects to be implemented locally under this fund every year.
OPEN SOCIETY FORUM www.forum.mn Thank you for your attention.
