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The Changing Role of Parliament in the Budget Process

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The Changing Role of Parliament in the Budget Process. The Grand National Assembly of Turkey (GNAT) in collaboration with Sigma and MATRA FLEX Afyonkarahisar, Turkey 8-9 October 2008. The Parliament and the Budget. Enhancing its Capacity for Oversight Prof. Daniel Tarschys.

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The Changing Role of Parliament in the Budget Process

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  1. The ChangingRole of Parliamentin the Budget Process The Grand National Assembly of Turkey (GNAT)in collaboration with Sigma and MATRA FLEX Afyonkarahisar, Turkey8-9 October 2008

  2. The Parliament and the Budget Enhancing its Capacity for Oversight Prof. Daniel Tarschys

  3. ”The Power over the Purse” • Early rulers convened ”grand councils” when they needed new aids and contributions • Meanwhile, they relied on their ”small councils” • Eventually, these two fluid bodies were institutionalised into parliaments and cabinets

  4. The Power Balance under Parliamentarism • Parliaments are formally the ultimate decision-makers on money matters • But under parliamentarism, most real decisions are nevertheless made by governments

  5. The Stages of Budgeting • requests, • central priority-setting, • legislation, • execution, • auditing • scrutiny.

  6. Where Does Parliament Come In? • requests, • central priority-setting, • legislation, • execution, • auditing • scrutiny.

  7. Involvement in the legislative phase • US Congress vs UK Parliament • Most countries: very few amendments • Three Models of Budgetary Examination: * single budget committee * specialised committees * mixed solution

  8. Models for Auditing • Anglo-Saxon Model: Comptroller General • Mediterranean Model: Court of Auditors • N. & E. European Model: Auditing Agency

  9. Parliament & the Audit Involvement in appointment? Report to parliament? If so, to whom? Public accounts committee, or specialised committees? Extensive treatment in parliament?

  10. Holding the Executive Accountable Why parliamentary oversight matters: • morale and motivation in the executive branch • confidence and legitimacy • policy learning and policy innovation • social consensus

  11. Impotent parliaments? No! • Resource matters often decided outside the budgetary process. • The budget is mainly a summary of previous decisions. • Parliamentary discussions affect the parameters for governmental action • The power of questions

  12. Questions on public expenditures • Questions on disbursements (regularity, legality, eligibility) • Questions on output (effectiveness, efficiency, economy) • Questions about outcomes and impact

  13. Sources of information • Disbursements (regularity, legality, eligibility): AUDITS • Output (effectiveness, efficiency, economy): EVALUATION • Questions about outcomes and impact RESEARCH

  14. Designing procedures for parliamentary scrutiny • Institutional issues: which committees are involved? • Informational issues: on which basis can parliaments raise questions about budgetary performance? Spoon-fed by government, or independent sources? • Procedural issues: how should the proceedings be organised to make an impact?

  15. Institutional issues • Annual discharge procedures? • Public accounts committees, or specialised committees? • Special rapporteurs?

  16. Performance budgeting: do parliaments care? • “There is very little direct evidence that performance information in budgets and annual reports is directly used by members of parliament in their oversight” Miekatrien Sterck & Geert Bouckaert 2006

  17. Analytical resources • Scrutiny of government reports • Staff assistance (in parties, in committees, or in general parliamentary research services) • External resources (modalities for use, hearings, reports).

  18. Formating parliamentary discussions • From agora to chamber to studio • The new parliamentary balcony is in the living-room • In an age of massive entertainment, will the audience stay tuned?

  19. Setting the stage for parliamentary oversight • Architecture • Scenography • Dramaturgy

  20. Parliamentary cooperation • Inter-parliamentary Union • Parliamentary Assemblies • COSAC • Association of Secretaries General of Parliaments (ASGP) • International Political Science Association: research group on legislative studies

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