Nepal obtained a score of 44 out of a total of 100 in global budget transparency in 2012, as against 45 recorded in 2010, shows a latest international report published every two years. With the score, Nepal was placed at the bottommost position among South Asian nations that took part in the Open Budget Survey 2012.[break]
The result means Nepali citizens and civil society organizations were further restricted from effectively taking part in decision-making processes on budget formation and holding the government accountable for how it raises and spends tax collected from the public, says the report published by the Washington-based International Budget Partnership, which placed New Zealand on the top spot, followed by South Africa and the UK in second and third positions, respectively.
Nepal´s performance worsened in 2012 as it could not come up with a pre-budget statement, which includes “the assumptions used to develop the budget, such as total expected revenue, expenditure, and debt levels, and broad sector allocations”, according to the report.
Nepal´s score was also affected by failure to publish ´citizens budget´, “a simplified version of a budget document that uses nontechnical language and accessible formats in order to facilitate citizens´ understanding of, and engagement with, the government´s plans and actions during the budget year”, says the report.
"Nepal´s ranking on global budget transparency index would not improve unless the government publishes pre-budget statement and citizens budget," said Taranath Dahal, chairperson of the Freedom Forum, which conducted the research for the International Budget Partnership in the country.
Failure to produce these documents indicates that the state is not providing sufficient information to the public on budget, which charts out various development plans, government policies and information on subsidies and hand-outs that state is offering, among others.
“Government budgets matter to all, and citizens want to know - indeed, have the right to know - what is in their country´s budget. And there should be mechanisms for public participation and accountability to keep budgets on track,” says the report.
The report also states that budget transparency and public participation in budget formation help shine the light on leakages, improve efficiency in public expenditures and foster equity by matching national resources with national priorities. On the other hand, opacity in fiscal matters can undermine fiscal discipline and make international credit expensive for countries, the report adds.
“Transparency along with opportunities for public participation in budgeting can maximize the positive outcomes associated with open budgeting. Such opportunities should be provided throughout the budget cycle by the executive, legislature and supreme audit institutions,” Dahal said in a statement.
Scores of South Asian countries
India - 68
Afghanistan - 59
Bangladesh - 58
Pakistan - 58
Sri Lanka - 46
Nepal - 44
Bhutan - NA
Maldives - NA
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