Topic Guide: the Budget Process

After the budget has been formulated by the executive, the proposed budget is approved by parliament. Similar to the budget formulation stage, corrupted parliamentarians might amend the budget to the benefit of individuals or interest groups. There is also a risk that parliament does not object to corruption-motivated budget and (mis)allocations already included in the draft budget as developed by the executive. In either case, corruption risks at this stage are related to uncontrolled lobbying, political corruption and, in extreme cases, state-capture.  

Tools and approaches for reducing corruption opportunities in the budget approval phase typically include:

To allow for parliamentarians to scrutinise and debate the draft budget thoroughly, sufficient time is needed. The OECD recommends parliaments should have three months to review and debate the draft budget bill. This period is not always provided for, even in OECD countries.

Often, members of parliament will require support from experts and the parliament’s apparatus to properly assess the draft budget in all its complexity. The capacities of the specialists in the apparatus of the parliament may need to be strengthened to improve the quality of the parliamentary debate of the draft budget bill and to properly identify corruption risks.

The introduction of credible lobby registers and transparency over the business interests of individual members of parliament may be an effective approach and provide an opportunity to increase civil society control over the adoption of the budget in parliament.