Open Budget Index: Limited Transparency in Serbia
Serbia is among the countries where budget transparency is assessed as “limited,” scoring 53 out of a possible 100 points in the international Open Budget Index (OBI) survey, Transparency Serbia announced.
Serbia has improved by two points compared to the previous round of this survey, which is conducted every two years.
Of the three segments covered by the research, public participation in the budget-making process received by far the lowest score - just 2 out of 100 points. Transparency Serbia particularly highlights that mechanisms for citizen consultation on the budget, in addition to other countries that can serve as examples, also exist in numerous municipalities and cities within Serbia itself.
The research shows that, in terms of budget transparency, Serbia is at the level of the regional average.
Higher scores were recorded by Albania (64) and Montenegro (54), while North Macedonia (39) and Bosnia and Herzegovina (30) ranked lower.
The report points to several shortcomings compared to good international practice.
The Government still does not publish a mid-year (six-month) budget execution report, a document that would allow timely insight into changes and reallocations during the budget year.
The budget proposal should include a more detailed description of fiscal risks, provide more data on assets and liabilities, tax expenditures, earmarked revenues, as well as the long-term sustainability of public finances.
It is also necessary to improve financial reporting and comparisons between initial macroeconomic forecasts and actual outcomes - through more detailed presentation of program-based expenditures, the structure of public debt, and expenditure classification.
The segment with the highest score relates to oversight, which this year stands at 57 points, although still below the Balkan average of 62. Within oversight, the result is solid thanks to the performance of the State Audit Institution (83), while the score for parliamentary oversight is 44.
To improve this, it is recommended that Members of Parliament debate budget policy before the draft budget is submitted, and that the draft be delivered to them at least two months before the start of the budget year. Parliamentary committees should play a more active role by reviewing the draft budget and reports on its execution, with mandatory publication of analyses and findings. It is also necessary to ensure that the National Assembly is consulted before any reallocation of funds between budget users during the fiscal year.
The Open Budget Survey is the only global, independent, comparative, and evidence-based research tool that uses internationally accepted criteria to assess public access to budget information, the real opportunities for public participation in the budget process, and the role of oversight institutions such as, in Serbia, the National Assembly, the State Audit Institution, and the Fiscal Council.
The International Budget Partnership (IBP), based in Washington, established the methodology and first conducted the Open Budget Survey in 2006. Its aim is to help citizens around the world better understand budget processes and gain the ability to influence how public funds are raised and spent. In cooperation with IBP, the survey is conducted every two years by organizations independent of the government (in Serbia, with Transparency Serbia). The findings are verified by two independent experts, while government representatives are given the opportunity to point out any omissions, after which the final results are compiled.
