The GIFT High Level Principles on Fiscal Transparency, Participation and Accountability

Murray Petrie i-Scale Senior Steward for GIFT ICGFM Conference, Washington DC 10 December 2012

Why a new set of FTPA Principles?

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Aim to sit above, unify and improve alignment of

existing norms and standards Help identify gaps and overlaps (post-GFC; new emphasis on participation) Frame subsequent development of new norms (level 2) and assessments (level 3) Build consensus within GIFT Initial discussion December 2011 Feedback from govts, IFIs, CSOs Adopted by GIFT Stewards in August 2012

A Three-level Hierarchy
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GIFT High Level Principles Standards and norms FTPA assessments

Key New Elements in the Draft Principles

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The publics right to information and right to

participate in fiscal policy The role of the legislature Triple bottom line reporting Public service delivery
Accompanied by (draft) Expanded Version of HLPs

to support implementation

Scope of Fiscal Policy in HLPs

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Taxation, borrowing, spending, investment and

management of public resources In technical terms: public policies implemented through the provision of non-market services, and the redistribution of income and wealth, financed primarily by taxes and other compulsory levies on nongovernment sectors Distinct from regulatory, monetary, and commercial policies Covers policy design, implementation, ex post review Incorporates the three familiar levels of fiscal management: 1) Aggregate fiscal policy; 2) Allocation of resources in line with policy priorities; 3) Efficient and effective public services

The High Level Principles

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10 is the magic number

Preamble, plus 2 parts: Access to Fiscal Information (principles 1-4) The Governance of Fiscal Policy (principles 5-10)
Bookended by two new rights principles: A public right to fiscal information (from ICCPR Art. 19) A right to participate directly in fiscal policy design and implementation (drawn from ICCPR Art. 25)

Access to Fiscal Information

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P1: Everyone has the right to seek, receive and impart

information on fiscal policies P2: Clear and measureable objectives for aggregate fiscal policy, regular progress reports, and explain deviations P3: Presentation of high quality financial and nonfinancial information on past, present, and forecast fiscal activities, performance, fiscal risks, assets and liabilities P4: Govts should communicate the objectives they are pursuing and the outputs they are producing with the resources entrusted to them, and endeavour to assess and disclose the anticipated and actual social, economic and environmental outcomes

Governance of Fiscal Policy

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P5: All transactions should have their basis in law P6: Government sector clearly defined, and financial relationships

with private sector disclosed, conducted openly, and follow clear rules and procedures P 7: Roles and responsibilities for fiscal activities clearly assigned between the legislature, the executive and the judiciary, between national and each SNG, between government and rest of public sector, and within government sector P 8: No taxation without legislative approval P 9: SAI independence, mandate, access to information, and resources. SAI should operate in an independent, accountable and transparent manner P 10: Citizens and non-state actors should have the right and effective opportunities to participate directly in public debate over the design and implementation of fiscal policies

Expanded High Level Principles

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A working draft, comments sought

Explains each of the ten Principles in more detail to

provide rationale and to support implementation:

Why the Principle is important Definitions of key terms The origins of the Principle How the Principle is reflected in existing international norms and standards Country practices with respect to adhering to the Principle Sources of further information and guidance