Participatory Mechanisms in the Budgeting Process (AM0049)

Brief Description of the Commitment
Ensuring participatory processes carried out by state bodies, automating, simplifying and unifying the budget formation processes for the public as much as possible, contributing to the increase of CSO participation in the budget process. The platform planned by the commission will include provision of additional simplified information on budget requests, proper feedback from government agencies on submitted proposals, and will also provide opportunities for capacity building of CSOs and other stakeholders.

Problem Definition
1. What problem does the commitment aim to address? Revision and introduction of participatory mechanisms of budget formation, implementation and monitoring in the budgeting process. Increase of participatory capacities and skills within the state administration bodies, local administration bodies and within the circles of civil society partners. Promotion of transparency, accountability and integrity in budgeting processes.

2. What are the causes of the problem? Point 24 of the Schedule approved by Decision of the Prime Minister of the Republic of Armenia N 35-A of 18 January 2021 prescribes that within the framework of MTEF drafting activities, public authorities and territorial administration bodies of the Republic of Armenia (applicant bodies) should conduct discussions — in the areas under their jurisdiction — with interested civil society organizations on budget requests and present the results of the discussions (including the summary on accepting or rejecting submitted remarks and recommendations) to the Ministry of Finance. In accordance with the requirements of point 24, 8 of the 46 applicant bodies submitted the above-mentioned information to the Ministry of Finance, and only 2 of which conducted the above-mentioned discussions. Recently, the "International Budget Initiative" drew up the first report on budgetary processes in Armenia, where the low public participation index emphasized once again the need to improve the participation process.

Commitment Description
1. What has been done so far to solve the problem? In order to avoid such problems within the framework of the budgeting process of 2023 and to demonstrate the necessary consistency, there was a need to be guided by the methodological instructions for ensuring public participation in the process of developing budget programmes of state bodies within the framework of development of State Medium-Term Expenditure Plan of the Republic of Armenia for 2023-2025 developed by the Ministry of Finance and draft State Budgets of the Republic of Armenia for 2023, as well as to submit — to the Ministry of Finance of the Republic of Armenia within the specified period — complete information on public participation in the programmes, recommendations and their progress.

2. What is the solution proposed by us? Ensure the accessibility and availability of budgetary and other information for the public by creating necessary conditions for equal participation by all beneficiaries in the participatory processes and for consistent dissemination of these processes among wide circles of the public and the establishment of participatory culture. Should support and serve the implementation of the following functions related to participatory processes: ● provision of public awareness/notifications regarding participatory processes; ● publication/publicizing of information on the State budget and budget programmes, including on Simplified (and/or Interactive) Budget, Citizen's Budget, Budget Requests, Reports on the Implementation of the Budget, other reports (Audit Opinions, Monitoring Reports, Budget Programme Evaluations), Research and Analysis, Accepted Proposals (status), etc., presentation of public remarks and proposals; ● conducting public discussions, including in an on-line format (discussions can be organized on different topics. It should be an open platform for constructive dialogue and for presenting users’ remarks, proposals and opinions on the topic. There are no restrictions in terms of consideration, posting and using of information. Only users registered on the platform can make remarks and proposals and vote in the discussions). ● respond (feedback) by state bodies regarding the proposals, remarks and discussions; ● furnishing information on the process of accepted proposals; ● evaluation of participatory processes.

3. What results do we want to achieve by implementing this commitment? Public discussions will contribute to the participation of beneficiaries (NGOs, private sector, other organizations) in the processes of elaboration and implementation of budget programmes, the improvement of awareness of budget programmes and the provision of feedback.

Commitment Analysis
1. How will the commitment promote transparency? Ensure the accessibility and availability of budgetary and other information for the public, creating necessary conditions for equal participation by all beneficiaries in the participatory processes and for consistent dissemination of these processes among wide circles of the public and the establishment of participatory culture.

2. How will the commitment help foster accountability? Should support and serve through public awareness raising measures/notifications regarding participatory processes, publication/publicizing of information on the State budget and budget programmes, presentation of public remarks and proposals, conducting public discussions, presentation of state bodies respond (feedback) regarding the presented proposals, remarks and discussions, provision of information on the process of accepted proposals.

3. How will the commitment improve citizen Through presentation of public remarks and proposals, conducting public discussions, presentation of state participation in defining, implementing, and monitoring solutions? bodies respond (feedback) regarding the presented proposals, remarks and discussions, and provision of information on the process of accepted proposals.

Commitment Planning (Milestones | Expected Outputs | Expected Completion Date)

Action 1. Identification of a digital platform for ensuring the participatory budgeting process. | Setting the platform structure and design, ensuring public awareness raining measures/notification s regarding participatory processes, publication/publicizing of information on the State budget for 2024 and budget programmes. | March 2023

Action 2. Establishment and finalization of the public discussions component | Establishment of the public awareness tool and the component of public discussions with CSOs on budget requests, development and finalization of the platform for participatory processes | June 2024

Relation of the Commitment strategic documents and other international processes Public Administration Reform Strategy 2021-2026 Programme of the Government of the Republic of Armenia: "6. Institutional Development" Public Finance Management System Reform Strategy for 2019-2023 (Target 21). OECD recommendation: to improve the access to information and public communication in the Republic of Armenia Sustainable development goal 10: Reduced inequality Reduce inequality within and among countries Sustainable development goal 16: Peace, justice and strong institutions: Promote building fair, peaceful and inclusive societies.

Action Plan Review

Commitment 4. Participatory mechanisms in the budgeting process

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Modest