21 February 2013
AMMAN -- Jordan has ranked 30 on a 100-nation global index list that measures governments' budget transparency and accountability.

According to the Open Budget Survey conducted by the International Budget Partnership (IBP), the Kingdom has taken the top spot among Arab countries by scoring 57 out of 100.

The results related to Jordan were announced by Amman-based Partners Centre at a press conference on Wednesday.

The Open Budget Survey, which was first released in 2006 and is conducted biennially, showed that Jordan's score in 2012 has improved over 2010 when the Kingdom scored 50 points in the availability of eight key budget documents issued by governments.

According to the study, In the Pre-Budget Statement, Jordan scored 44 out of 100 points, 66 in the Executive's Budget Proposal, 100 in the Enacted Budget, zero in the Citizens Budget, 88 in the In-Year Reports, zero in the Mid-Year Review, 37 in the Year-End Report, and 43 in the Audit Report.

Partners Centre Executive Director Rajaa Hiyari said the results of the survey show that the government provides the public with some information related to its spending bill and its fiscal activity, which makes it a challenge for people in case they wanted to question the government on its management of public funds.

The findings related to Jordan indicate that the country is on track to achieve good governance, Hiyari added, urging civil society organisations and the media to practice further pressure on authorities to adopt best transparency practices.

Mohammad Masaadeh, a researcher in the study, said the survey reflects facts about transparency and accountability as well as participation in preparing state budgets.

He explained that the approach used in the survey required government agencies involved in preparing the budget to answer a total of 125 questions, in addition to reviewing articles in the Constitution and laws that regulate budget process.

The International Budget Partnership made some recommendations to Jordan to improve budget transparency standards.

The suggestions include the release of mid-year budget review and prepare citizens budget.

Other recommendations included releasing more information about the government's debts, linking the budget with the goals set by authorities and giving more details about the projections and assumptions used in planning the spending bill.

As budget monitoring by lawmakers was classified as medium, the IBP recommended that the government should consult the Parliament in identifying spending priorities.

New Zealand came first in the global index by scoring 93 out of 100, South Africa ranked second, the United Kingdom was third while Sweden and Norway rounded out the top five. The US came in the seventh place.

The eight key budget documents of the Open Budget Index that should be publicly available as per international best practices on fiscal transparency are:

  • Pre-Budget Statement: presents the assumptions used in developing the budget; expected revenue, expenditure, and debt levels; and the broad allocations among sectors.

  • The Executive's Budget Proposal: presents the government's detailed declaration of the policies and priorities it intends to pursue in the upcoming budget year, including specific allocations to each ministry and agency.

  • The Enacted Budget: is the legal document that authorises the executive to implement the policy measures the budget contains.

There are three review documents that governments should publish during the course of budget execution. First, the executive should issue monthly or quarterly.

  • In-Year Reports: on revenues collected, expenditures made, and debt incurred.

  • Mid-Year Review: to discuss any changes in economic assumptions that affect approved budget policies.

  • Year-End Report: that summarises the financial situation at the end of the fiscal year. This report should include an update on progress made in achieving the policy goals of the Enacted Budget.

  • Audit Report: covering all activities undertaken by the executive.

  • Citizens Budget: a simplified summary of the budget that is issued in languages and through media.

© Jordan Times 2013