GB - Parliamentary Budget Office (Problem (To carry out these…
GB - Parliamentary Budget Office
Significance of Budget
Socioeconomic and political doc which is a contract between citizens and state.
It is a legitimate process of raising revenue and distribution of public resources among various sectors.
Through budget elected representatives exert influence over economic and social development policies of the country.
Importance of legislative participation in the budget process
Maintains check and balances crucial for effective and transparent governance.
Ineffective parliamentary control over Budget
Parliament is the Guardian of the public purse
Budget approving body
Presentation of the budget
Scrutiny of the budget proposal
and grant to various ministries
consideration and approval of budget
Independent, impartial body linked to parliament to provide high-quality tech, objective and non partisan analyses of budget to parliament and its committees.
To carry out these functionalities, parliament needs institutional, technical and analytical competency.
Budget scrutiny through debate and standing committee is weak.
Due to Lack of Analytical knowledge support, MP's are unable to scrutinize grant demands.
Sometime MP's have to reach out to external experts --> this is ad hoc approach.
As a result executive act according to its preference
This resulted in arbitrary taxation policy, burgeoning fiscal deficit, inequitable allocation of public revenue
Need of PBO
Provide support of MP's
To fill the knowledge gap between parliament and MP's
Many ordinary laws have been piggybacked as money bills in fiance Act 2017, while parliament remained oblivious
Promoting accountability and fiscal descipline
Established across presidential and parliamentary systems
US, canada, Austria, australia, korea, italy mexico
ghana, afghanistan, vientnam, philipines, nigeria, liberia
Core functions of PBO
Independent and objective financial forecast
baseline estimate survey
analyse executive budget proposal
providing medium to long term proposal