Iraq: steps on the road of Budget transparency
Iraq’s score on the 2023 Open Budget Survey shows limited progress in some indicators of budget transparency.
Hussein Ahmed Alsarhan
June/ 2024
On 29 May, the International Budget Partnership (IBP) launched a Global report called Open Budget Survey 2023 (OBS) covering 125 countries, including Iraq, which are home to 7.5 billion people (95% of the world’s population) and include budgets totaling more than $33.5 trillion in spending in Fiscal Year 2022. Since 2006, the Survey has become an essential benchmark for measuring whether national budgets are accountable and inclusive. And the survey is a powerful tool and a springboard for civic actors to hold governments accountable and ensure public funds serve public interests.
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 legislatures and supreme audit institution, in the budget process.
A budget is written in the language of money, but it isn’t fundamentally about money — it’s about values. A government’s budget, therefore, reveals what a government values — what economic and social challenges it seeks to tackle, and the resources it dedicates to achieving those goals. The budget is a crucial vehicle for decision-making and public communication about economic and social objectives. Involving the public in the budgetary process is not only a democratic necessity but also a safeguard against wasteful spending and potential social unrest.
The budget process provides countless opportunities for governments to share information about how they are using public resources and why. The process can also give everyday people the opportunity to give governments community-generated evidence and local input so that decisions reflect the needs and priorities of the public. Engaging the public is a winning proposition that can help restore the people’s trust in government’s ability to deliver economic dividends and improve lives. It help to weave the values of equity and inclusion into the fabric of all budget decisions. Iraq’s ranking: 113 of 125 countries.
The OBS including three main indicators:
First, the transparency is measures public access to information on how the central government raises and spends public resources. Iraq has a transparency score of 8 (out of 100). In 2021, Iraq has a transparency score of 6/100. In 2012, Iraq has a transparency score of 4/100. We noted that Iraq has achieved very limited progress in this indicator, which depends on issuing budget documents and published online to the public. Iraqi government (by ministry of finance ) should prioritize to issuing budget documents (Pre-Budget Statement, Executive’s Budget Proposal, Citizens Budget, Mid-Year Review and Audit Report).
The second, Public Participation, 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.
For Iraq, Iraq has a public participation score of 0 (out of 100). To further strengthen public participation in the budget process, Iraq’s Ministry of Finance should prioritize the following actions: Pilot mechanisms to engage the public during budget formulation and to monitor budget implementation. Actively engage with vulnerable and underrepresented communities, directly or through civil society organizations representing them.
The Third, Budget Oversight, the OBS examines the role that legislatures and supreme audit institutions (SAIs) play in the budget process and the extent to which they provide oversight. The OBS report show that the legislature and supreme audit institution in Iraq, together, provide limited oversight during the budget process, with a composite oversight score of 46 (out of 100).
Iraq’s Parliament Council provides weak oversight during the planning stage of the budget cycle and limited 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. The Executive’s Budget Proposal should be submitted to legislators at least two months before the start of the budget year. Legislative committees should examine the Executive’s Budget Proposal and publish reports with their analysis online. The legislature should approve the Executive’s Budget Proposal before the start of the budget year.
