'Nagaland has low level of budget transparency'

Ranking of Indian States in Budget Transparency.   (Source: Budget Transparency Report 2020, Transparency International India)

 

Assam tops states with best practices, Manipur at the bottom, says survey 

 

Morung Express News
Dimapur | January 29 

Nagaland scored 48 in the ranking of Indian states in budget transparency putting the state under the ‘low level transparency in budget’ category of the rating scale, according to a survey undertaken by Transparency International India titled ‘Transparency in Budgetary Process.’ 

Manipur is at the bottom of the list under the ‘Opaque’ rating scale with a score of just 25 followed by Meghalaya with a score of 28. 

The rating has been categorized as opaque (0-45), low level of transparency (46-60), medium level of transparency (61-75), transparent (76-90) and highly transparent (91-100). 

Assam emerged as the top state in terms of best practices followed in budget formulation with a score of 70, followed by Odisha (66) and Andhra Pradesh (74), the survey stated. 

Assam is the only government that regularly conducts budget awareness campaign across its districts. Interestingly, none of the states and union territories under India figured in the transparent and highly transparent rating scale, according to the survey. 

The survey was based on four parameters -- public disclosure, budgetary process, post budget fiscal management and efforts to make budget more transparent and citizen friendly.

"It is ironical that being a 'Union of States', state budgets in India has never received such importance as claimed by Union Budget.

"As a result, most of the state budgets are neither inclusive nor transparent; this is not good for country in general and that state in particular," the Transparency International said in its report.

Parameters used for ranking include annual financial statement and other supporting documents such as budget speech, budget highlights, demand for grants, finance/appropriation bills. 

It also took into account government initiatives/steps to engage civil society organizations in state-budgetary making process and efforts to incorporate citizen inputs during the formulation of the budget/special portal or website for budget. 

Announcement of date of presentation of budget in advance, publication of pre-budget document like pre-budget statement, economic survey, timely pre-budget consultation with different stakeholders were also part of the parameters. 

 

Problem with state budget aggravating 

Giving its observation, the Transparency International stated that the problem with state budget and fiscal transparency is aggravating because the media do not highlight the details and setbacks related to state budgets. Along with that budget discussion in most of the state legislatures begin within 24 hours after the budget is tabled and last for around one to six days due to which serious debate on state budgets become impossible. 

It also stated that state legislatures do not have the guidance and suggestions of the academicians, think thanks and research institutes and NGOs while preparing the budget like the Parliament members. 

The methodology of the research report was devised after a thorough review of budget transparency researches conducted at international level, the Transparency International claimed.

Four broad parameters were developed with corresponding points to rank 28 states and 3 Union Territories of India on the basis of transparency and accountability in their budgeting system. They include public discourse and accessibility of important budget documents, participatory and inclusive budgetary process, post budget fiscal management and transparency and special effort to make budget more transparent and citizen friendly. 

 

Recommendations

The Transparency International provided recommendations to improve budget transparency and accountability. They include effective use of information, communication & technology for transparent financial management, strengthening institutions involved in the budgetary process, devise mechanism for citizen’s engagement in budgetary process etc. 

Transparency International India is a leading non-political, independent, non-governmental anti-corruption organization of India.